Chapter 13- Budgeting for Planning and Control

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Table of Contents

Chapter 13- Budgeting for Planning and Control

Learning Objectives

Definition and Role of Budgeting

Planning

Control

Responsibility Centres

Types of Responsibility Centres

Two Dimensions of Budgeting

Components of the Master Budget

Key Features of a Sound Budgetary System

The Operating Budget

Preparing the Sales Forecast

Preparing the Production Budget

Preparing the Direct Materials Budget

Preparing the Direct Labour and Overhead Budgets

Preparing the Selling and Administrative Expenses Budget

Budgeted Cost of Goods Sold and Ending Inventory

Preparing the Budgeted Income Statement

The Financial Budget

The Cash Forecast

The Cash Forecast (Collections)

The Cash Forecast (Payments)

The Cash Forecast (Disbursements)

The Cash Forecast

The Forecasted Balance Sheet

The Flexible Budget

PPT Slide

Flexible Budgets and Performance Evaluation

Performance Evaluation (Continued)

Behavioural Dimensions of Budgeting

Operating Budgets for Merchandising and Services

Translating the concepts of zero-base budgeting into practice requires four steps...

Numerical Questions from the Back of Chapters 12 and 13

Question E12-5

Question E12-11

Question P12-3

Question E13-1

Question E13-3

Question E13-13

Question E13-19

Author: Ted R. Compton and Nabil Elias

Email: garys@yorku.ca

Home Page: http://www.atkinson.yorku.ca/~garys