Continuous or Perpetual Budget
1999
2000
2001
This budget is usually a twelve-month budget that rolls forward one month as the current month is completed.
A standing committee responsible for
overall policy matters relating to the budget coordinating the preparation of the budget
The Master Budget Sales Budget
Uncover potential bottlenecks
Responsibility Accounting
Managers should be held responsible for those items — and only those items — that
the manager can actually control to a significant extent.
Budget
Manufacturing Overhead Budget
The Master Budget Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
Selling and Administrative
Selling price per unit
Total sales
April 20,000
May 50,000
June 30,000
Quarter 100,000
The Sales Budget
Budgeted sales (units)
Selling price per unit
Total sales
Selling and Administrative
Budget
The Master Budget Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
Selling and Administrative
April
20,000 units
May
50,000 units
June
30,000 units
July
25,000 units
August 15,000 units.
The selling price is $10 per unit.
The Sales Budget
Budgeted sales (units)
April
20,000
$ 10 $200,000
May
50,000
$ 10 $500,000
June
30,000
$ 10 $300,000
Quarter
100,000
$
10
$ 1,000,000
The Production Budget
Sales Budget
Production Budget
Production must be adequate to meet budgeted sales and provide for sufficient ending inventory.
2002
Participative Budget System
Top Management
Middle Management
Middle Management
Supervisor Supervisor Supervisor Supervisor
Flow of Budget Data
The Budget Committee
Budget
Manufacturing Overhead Budget
Cash Budget
Budgeted Financial Statements
The Sales Budget
Detailed schedule showing expected sales for the coming periods
Choosing the Budget PeriodOperating Budg源自t19992000
2001
The annual operating budget may be divided into quarterly
or monthly budgets.
2002
Choosing the Budget Period
❖ Planning -involves developing objectives and preparing various budgets to achieve these objectives.
❖ Control -involves the steps taken by management that attempt to ensure the objectives are attained.
管理会计案例培训教材英文版
The Basic Framework of
Budgeting Detail
Budget Detail
Budget Detail
Production
Master
Budget
Budget
Summary of
a company’s
plans.
Planning and Control
expressed in units and dollars.
Budgeting Example
Royal Company is preparing budgets for the quarter ending June 30.
Budgeted sales for the next five months are:
Advantages of Budgeting
Communicating plans
Define goal and objectives
Think about and plan for the future
Coordinate activities
Advantages
Means of allocating resources