Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
April 20,000
10,000 30,000
4,000 26,000
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May 50,000
June 30,000
Quarter 100,000
Budgeted sales Desired percent Desired inventory
50,000 20%
10,000
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
The Sales Budget
Budgeted sales (units)
Selling price per unit
Total sales
April
20,000
$ 10 $200,000
May
50,000
$ 10 $500,000
June
30,000
$ 10 $300,000
Quarter
100,000
Participative Budget System
Top Management
Middle Management
Middle Management
Supervisor Supervisor Supervisor Supervisor
Flow of Budget Data
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Think about and plan for the future
Coordinate activities
Advantages
Means of allocating resources
Uncover potential bottlenecks
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Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Master Budget
Sales Budget
Selling and Administrative
Budget
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Advantages of Budgeting
Communicating plans
Define goal and objectives
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
10,000 46,000
June 30,000
Quarter 100,000
5,000 35,000
6,000 29,000
5,000 105,000
4,000 101,000
Irwin/McGraw-Hill
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Master Budget
Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
or monthly budgets.
2002
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Choosing the Budget Period
Continuous or Perpetual Budget
1999
2000
2001
2002
The Sales Budget
Detailed schedule showing expected sales for the coming periods
expressed in units and dollars.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
Royal Company wants ending inventory to be equal to 20% of the following month’s budgeted sales in units.
Selling and Administrative
Budget
Manufacturing Overhead Budget
Irwin/McGraw-Hill
Cash Budget
Budgeted Financial Statements
© The McGraw-Hill Companies, Inc., 2000
管理会计案例培训教材英文版(ppt 75)
The Basic Framework of Budgeting
Master Budget Summary of a company’s plans.
Detail
Budget Detail
Budget
Production
Detail Budget
Irwin/McGraw-Hill
Irwin/McGraw-Hill
May 50,000
June 30,000
Quarter 100,000
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
The Master Budget
Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
Selling and Administrative
Budget
Manufacturing Overhead Budget
© The McGraw-Hill Companies, Inc., 2000
The Budget Committee
A standing committee responsible for
❖overall policy matters relating to the budget ❖coordinating the preparation of the budget
Responsibility Accounting
Managers should be held responsible for those items — and only those items — that
the manager can actually control to a significant extent.
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
June 30,000
Quarter 100,000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
June
30,000 units
July
25,000 units
August 15,000 units.
The selling price is $10 per unit.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Sales Budget
This budget is usually a twelve-month budget that rolls forward one month as the current month is completed.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Budgeted sales (units)
Selling price per unit