财务管理预算分析报告.pptx

Work of ManagementRemember! PlanningDirecting and MotivatingControllingPlanning and ControlPlanning -- 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.Which of the following is not a benefit of budgeting? It uncovers potential bottlenecks before they occur. It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts.It ensures that accounting records comply with generally accepted accounting principles. It provides benchmarks for evaluating subsequent performance. Advantages of BudgetingDefine goaland objectivesCommunicatingplansThink about andplan for the futureAdvantagesCoordinateactivitiesMeans of allocatingresourcesUncover potentialbottlenecksResponsibility Accounting Managers should be held responsible for those items — and only those items — thatthe manager can actually controlto a significant extent.Fairmont Inc. uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs. For example, if the sales manager accepts a rush order that will result in higher than normal manufacturing costs, these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager. This type of accounting system is known as:A) responsibility accounting. B) contribution accounting. C) absorption accounting. D) operational budgeting. Choosing the Budget PeriodOperating Budget1999200020012002The annual operating budget may be divided into quarterlyor monthly budgets.Choosing the Budget PeriodContinuous or Perpetual Budget1999200020012002This budget is usually a twelve-month budget that rolls forward one month as the current month is completed.Participative Budget SystemFlow of Budget DataThe Budget CommitteeA standing committee responsible for