Kế toán, kiểm toán - Chapter 6: Planning, the balanced scorecard, and budgeting

Chapter 6Planning, the Balanced Scorecard, and BudgetingCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin6-*What are the Benefits of Budgeting?PlanningFinancial termsCommunication and coordinationAmong and between departments/functionsResource allocationScarce resourcesEvaluation and controlBenchmarking6-*What are the Costs of Budgeting?Time and resource requirementsTime consuming processAdaptabilityMay miss opportunitiesMotivation and behaviorBudgetary slack6-*What is the Difference between Mandated and Participatory Budgeting?MandatedTop downBased on standardsParticipatoryBottom upBased on “local” information6-*What is the Difference between Incremental and Zero-based Budgeting?IncrementalLast year is the baseAdjust for anticipated increases/decreasesZero-basedZero is the baseJustify all activities and requests6-*How Is Revenue Process Planning Related to the Balanced Scorecard?Balanced scorecardGoals and objectivesMeasurable outcomes for activitiesRevenue process planningPlanning activitiesBudget—financial goals6-*What are the Budgets that Result from Revenue Process Planning?Sales budgetUnitsDollarsCash receipts scheduleWhen—collection patternsHow much—sales discounts offeredUncollectible amounts6-*Revenue Budgets ContinuedAccounts receivable scheduleBeginning balanceAdd salesLess cash receivedLess sales discountsLess uncollectible amountsEquals ending balanceMarketing and distribution budgetExpected costs of activities6-*How Is Conversion Process Planning Related to the Balanced Scorecard?Balanced scorecardGoals and objectivesMeasurable outcomes for activitiesConversion process planningPlanning activitiesBudget—financial goals6-*What is the Budget that Results from Conversion Process Planning?Production budgetNumber of units to sellAdd desired ending inventory of finished goodsLess beginning inventory of finished goodsEquals number of units to produce6-*How Is Expenditure Process Planning Related to the Balanced Scorecard?Balanced scorecardGoals and objectivesMeasurable outcomes for activitiesExpenditure process planningPlanning activitiesBudget—financial goals6-*What are the Budgets that Result from Expenditure Process Planning?Administrative budgetExpected costs of activitiesDirect labor and manufacturing overhead budgetExpected amount and cost of activities6-*Expenditure Budgets ContinuedDirect materials purchases budgetNumber of finished goods units to produceMultiply by the amount of direct materials needed per unit of finished goodsAdd desired ending inventory of direct materialsLess beginning inventory of direct materialsEquals amount of direct materials to purchaseMultiply by the purchase price per “unit”Equal direct material purchases6-*Expenditure Budgets ContinuedCash disbursements scheduleWhen—payment patternsHow much—purchase discountsAccounts payable scheduleBeginning balanceAdd net purchasesLess cash paymentsEquals ending balance6-*What is the Master Budget?Revenue process budgetsSee exampleConversion process budgetsExpenditure process budgetsSee exampleCapital resources process budgets (later in text)Budgeted (pro forma) financial statements