Kế toán, kiểm toán - Chapter 20: Master budgets and performance planning

Financial and Managerial AccountingWild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.Chapter 20Master Budgets and Performance PlanningConceptual Learning ObjectivesC1: Describe the importance and benefits of budgeting and the process of budget administration.C2: Describe a master budget and the process of preparing it.20-*A1: Analyze expense planning using activity-based budgeting.Analytical Learning Objectives20-*AdvantagesCommunicates plansand instructionsPromotes analysis anda focus on the futureMotivates employeesProvides a basis forevaluating performance againstpast or expected resultsCoordinatesbusiness activitiesDefines goalsand objectivesBudget ProcessC 120-*Master Budget ComponentsSalesbudgetMerchandisePurchasesPrepare financial budgets: cash income balance sheetPreparecapitalexpenditurebudgetPrepareselling andgeneraladministrativebudgetsC 220-*Sales BudgetP120-*Merchandise Purchases BudgetP120-*From Hockey Den’s sales budgetSelling Expense BudgetP120-*General and Administrative Expense BudgetP120-*CashBudget(ExpectedReceipts &Disbursements)BudgetedIncomeStatementBudgetedBalanceSheetFinancial BudgetsP220-*40% of sales60% of salesBudgeted Cash ReceiptsP2From Hockey Den’s sales budget60 percent of September sales are collected in October20-*From merchandise purchases budgetCash Disbursements for PurchasesP220-*P220-*P220-*From the Cash BudgetP220-*P220-*