Premium Essay

Chapter 23

In: Business and Management

Submitted By jjtaylor72
Words 2037
Pages 9
Profit Planning (Budgeting) Learning Objectives
1. 2. 3. 4. 5. 6. 7. 8. 9. understand the budgeting process prepare a sales budget and a schedule of expected cash receipts prepare a production budget prepare a direct materials budget, including a schedule of expected cash disbursements for purchases prepare a direct labor budget prepare a manufacturing overhead budget prepare a selling and administrative expense budget prepare a cash budget prepare a budgeted income statement

10. prepare a budgeted balance sheet

Planning and Control

Planning -- 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.


Profit Planning (Budgeting)

Slide 2


Advantages of Budgeting
Define goal and objectives Communicating plans Think about and plan for the future

Coordinate activities Uncover potential bottlenecks Means of allocating resources


Profit Planning (Budgeting)

Slide 3

Responsibility Accounting; Choosing the Budget Period
• Responsibility accounting: Managers should be held responsible for those items — and only those items — that the manager can actually control to a significant extent.
Operating Budget





The annual operating budget may be divided into quarterly or monthly budgets.
ACCT5243 Profit Planning (Budgeting) Slide 4


Participative Budget System

Top Management

Middle Management

Middle Management





Flow of Budget Data
ACCT5243 Profit Planning (Budgeting) Slide 5

The Master Budget
Sales Budget

Production Budget Direct Materials Budget Direct Labor Budget

Selling and Administrative Budget Manufacturing Overhead Budget

Cash Budget


Similar Documents

Premium Essay

Brealy Chapter 23

...Answers to Practice Questions 1. Downward sloping. This is because high coupon bonds provide a greater proportion of their cash flows in the early years. In essence, a high coupon bond is a ‘shorter’ bond than a low coupon bond of the same maturity. 2. The key here is to find a combination of these two bonds (i.e., a portfolio of bonds) that has a cash flow only at t = 6. Then, knowing the price of the portfolio and the cash flow at t = 6, we can calculate the 6-year spot rate. We begin by specifying the cash flows of each bond and using these and their yields to calculate their current prices: Investment Yield C1 . . . C5 C6 Price 6% bond 12% 60 . . . 60 1,060 $753.32 10% bond 8% 100 . . . 100 1,100 $1,092.46 From the cash flows in years one through five, it is clear that the required portfolio consists of one 6% bond minus 60% of one 10% bond, i.e., we should buy the equivalent of one 6% bond and sell the equivalent of 60% of one 10% bond. This portfolio costs: $753.32 – (0.6  $1,092.46) = $97.84 The cash flow for this portfolio is equal to zero for years one through five and, for year 6, is equal to: $1,060 – (0.6  1,100) = $400 Thus: $97.84  (1 + r6)6 = 400 r6 = 0.2645 = 26.45% 3. Using the general relationship between spot and forward rates, we have: (1 + r2)2 = (1 + r1)  (1 + f2) = 1.0600  1.0640  r2 = 0.0620 = 6.20% (1 + r3)3 = (1 + r2)2  (1 + f3) = (1.0620)2  1.0710  r3 = 0.0650 = 6.50% (1 + r4)4 = (1 + r3)3  (1 + f4) = ......

Words: 2952 - Pages: 12

Free Essay

Psalm 23

...The Book of Psalms has been one of the most sacred collection of poems and prayers throughout history. The Psalms have many different themes, the one most familiar is the longing to experience God more intimately, and speak to him in a very honest and genuine way. One the most authentic aspects of Psalms is that they address the whole spectrum of human emotions, from intense emotions of despair to jubilee. The words of Psalm 23 are perhaps some of the most familiar words in scripture. It addresses the fear of mortality and conveys a theme of death but is intended for those who are living . Psalm 23 is versatile and speaks to the masses in different ways such as times of deep regret, joy, or fear. Psalm 23 begins the passage as, “A Psalm of David” which most would agree is an accurate title. The psalm begins with “The Lord is my shepherd” (v.1) the psalmist, who is believed to be King David, is immediately putting himself as a sheep in the interest of God. This is a very well known passage, so well, that the magnitude of the word’s meanings can easily be lost in translation. The passage has little to do with sheep, rather it focuses on being a shepherd. David states that the Lord God is his personal shepherd, signifying a personal relationship between them reminding the reader that Christianity is not as much a religion, as it is a relationship with God. The shepherd is the provider and protector of his flock, and the sheep are helpless without him. The opening continues with...

Words: 1899 - Pages: 8

Premium Essay

Problem 23-129 Accounting

...Pr. 23-129—Statement of cash flows (direct and indirect methods). Hartman, Inc. has prepared the following comparative balance sheets for 2010 and 2011: 2011 2010 Cash $ 297,000 $ 153,000 Receivables 159,000 117,000 Inventory 150,000 180,000 Prepaid expenses 18,000 27,000 Plant assets 1,260,000 1,050,000 Accumulated depreciation (450,000) (375,000) Patent 153,000 174,000 $1,587,000 $1,326,000 Accounts payable $ 153,000 $ 168,000 Accrued liabilities 60,000 42,000 Mortgage payable — 450,000 Preferred stock 525,000 — Additional paid-in capital—preferred 120,000 — Common stock 600,000 600,000 Retained earnings 129,000 66,000 $1,587,000 $1,326,000 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year. The income statement for 2011 is as follows: Sales $1,980,000 Cost of sales 1,089,000 Gross profit 891,000 Operating expenses 690,000 Net income $ 201,000 Instructions (a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2011. (b) From the information above, prepare a schedule of cash provided by operating activities using the direct......

Words: 1131 - Pages: 5

Free Essay

Mark 2:23-28

...“The Sabbath was made for man, not man for the Sabbath” Mark 2:23-28 Jesus and The Synoptic Gospels Dr. Charette 04/08/13 Mark 2:23-28 “One Sabbath Jesus was going through the grainfields, and as his disciples walked along, they began to pick some heads of grain. The Pharisees said to him, ‘Look, why are they doing what is unlawful on the Sabbath?’ He answered, ‘Have you never read what David did when he and his companions were hungry and in need? In the days of Abiathar the high priest, he entered the house of God and ate the consecrated bread, which is lawful only for priests to eat. And he also gave some to his companions.’ Then he said to them, “The Sabbath was made for man, not man for the Sabbath. So the Son of Man is Lord even of the Sabbath” (Mark 2:23-28, NIV). Introduction This paper will focus on the passage stated above, specifically the last statement; “The Sabbath was made for man, not man for the Sabbath.” The Sabbath is a reoccurring issue between Jesus and the religious rulers. In this paper I plan to research the reason why the Sabbath was created, give an exegetical view on this passage, and show how we can learn from this teaching. The Sabbath The Sabbath was established when God created the Earth. For in Genesis 2:2-3 it says, “By the seventh day God had finished the work he had been doing; so on the seventh day he rested from all his work. Then God blessed the seventh day and made it holy, because on it he rested from all the work of......

Words: 2528 - Pages: 11

Premium Essay

Kinns Chapter 23

...CHAPTER 22 Banking Services and Procedures Vocabulary Review Fill in the blanks with the correct vocabulary terms from this chapter. 1. Judy was unaware that checks were processed through at her bank. before they arrived 2. Because Alicia was the person who wrote the check, she was considered to be the . 3. When the Blackburn Clinic purchased the ultrasound machine, they paid $10,000 toward the so that they would be charged less interest. 4. Pamela wrote a check to Samantha, so Pamela is the . and Samantha is the 5. The of a check is the person who is presenting it for payment and may not be the person named as the payee. 6. Grace studied the , which is a series of laws that regulates sales of goods, commercial paper, secured transactions in personal property, and many aspects of banking. 7. First National Bank is considered the accounts. for Dr. Lupez’ business checking . 8. Instruments that are legally transferable to another party are considered 9. Rhonda made several and order supplies. from the clinic checking account to pay monthly bills 10. As soon as the monthly bank statement arrives, Rhonda does a to make certain that the statement and checkbook balance are in agreement. Copyright © 2007, 2003 by Saunders, an imprint of Elsevier Inc. All rights reserved. 283 284 22 BANKING SERVICES AND PROCEDURES Skills and Concepts Part I: Short Answer Questions Provide the answers to the questions in the blanks below. 11. List the four......

Words: 1515 - Pages: 7

Premium Essay

23 Things

...23 Things They Don’t Tell You about Capitalism HA-JOON CHANG Department of Economics, Cambridge University 23 Things They Don’t Tell You about Capitalism HA-JOON CHANG ALLEN LANE an imprint of PENGUIN BOOKS Published by the Penguin Group Penguin Books Ltd, 80 Strand, London WC2R 0RL, England Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, USA Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario, Canada M4P 2Y3 (a division of Pearson Canada Inc.) Penguin Ireland, 25 St Stephen’s Green, Dublin 2, Ireland (a division of Penguin Books Ltd) Penguin Group (Australia), 250 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson Australia Group Pty Ltd) Penguin Books India Pvt Ltd, 11 Community Centre, Panchsheel Park, New Dehli – 110 017, India Penguin Group (NZ), 67 Apollo Drive, North Shore 0632, New Zealand (a division of Pearson New Zealand Ltd) Penguin Books (South Africa) (Pty) Ltd, 24 Sturdee Avenue, Rosebank 2196, South Africa Penguin Books Ltd, Registered Offices: 80 Strand, London WC2R 0RL, England First published 2010 Copyright © Ha-Joon Chang, 2010 The moral right of the author has been asserted All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying,......

Words: 86029 - Pages: 345

Premium Essay

Term Paper 23

...extenuating circumstances. If you are absent from class, it is your responsibility to check on announcements made during your absence. 08/ 21 Introduction to the course requirements 08/26 Chapter 1 Role of Financial Markets and Institutions 08/28; 09/02 Chapter 2 Determination of Interest Rates 09/04 Chapter 3 Structure of Interest Rates 09/09; 09/11 Chapter 4 Functions of the Fed 09/16;09/18 Chapter 5 Monetary Theory and Policy 09/23 Chapter 17 Commercial Bank Operations September 25 First Midterm: Thursday, September 25, 2014 (Chapters 1, 2, 3, 4, 5) 09/30; 10/02 Chapter 17 Commercial Bank Operations 10/07; 10/09 Chapter 18 Bank Regulation 10/14; 10/16 Chapter 19 Bank Management 10/21; 10/23 Chapter 20 Bank Performance 10/28 Chapter 21 Thrift Operations October 30 Second Midterm: Thursday, October 30, 2014 (Chapters 17, 18, 19, 20) 11/04 Review for Written Assignment 11/06 No class meeting 11/11 Veteran's Day - campus closed 11/13; 11/18 Chapter 23 Mutual Fund Operations 11/20; 11/25 Chapter 6 Money Markets November 27 Thanksgiving Recess campus closed 12/2; 12/4 Chapter 9 Mortgage Markets 12/09 Review December 18 Final Exam: Thursday, December 18, 2014 11:00 am – 1:00 pm (Chapters 21, 23, 6, 9) IX. Grading and Evaluation: Midterm 1 25% Midterm 2 25% Final Exam 25% Written Assignment 25% Total 100% Midterms: There will be 2 midterm......

Words: 1456 - Pages: 6

Premium Essay

Physics 2 Chapter 23 Quiz

...A charged particle moves in a region of uniform magnetic field along a helical path (radius = 4.0 cm, pitch = 20 cm, period = 2.0 ms). What is the speed of the particle as it moves along this path? 0.16 km/s An electron moving in the positive x direction experiences a magnetic force in the positive z direction. If Bx = 0, what is the direction of the magnetic field? negative y direction A current of 4.0 A is maintained in a single circular loop having a circumference of 80 cm. An external magnetic field of 2.0 T is directed so that the angle between the field and the plane of the loop is 20°. Determine the magnitude of the torque exerted on the loop by the magnetic forces acting upon it. 0.38 N × m An unusual lightning strike has a vertical portion with a positive current of +400 A upwards. The Earth's magnetic field at that location is parallel to the ground and has a magnitude of 30 mT. In N, the force exerted by the Earth's magnetic field on the 25 m-long current is 0.30 A, West. An electron moves in a region where the magnetic field is uniform, has a magnitude of 60 mT, and points in the positive x direction. At t = 0 the electron has a velocity that has an x component of 30 km/s, a y component of 40 km/s, and a z component of zero. What is the pitch of the resulting helical path? 18 mm A 2.0-C charge moves with a velocity of (2.0i + 4.0j + 6.0k) m/s and experiences a magnetic force of (4.0i - 20j + 12k) N. The x component of the magnetic field is equal to......

Words: 2956 - Pages: 12

Premium Essay

Chapter 1 Assignment #1 Capt. 1 Exercises 14, 17, 20, 22, 23

...Assignment #1 Capt. 1 exercises 14, 17, 20, 22, 23 Assignment #1 Capt. 1 exercises 14, 17, 20, 22, 23 1-14 Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each. (a) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be? (b) How many shirts must Gina sell to break even? What is the total revenue for this? The various costs which Gina Fox incurs are; Fixed Cost (cost of using the equipment), FC = $350 Variable Cost (Material cost per short), VC = $8 per shirt and the Selling price of Foxy Shirts, P = $15 per unit f  350 s  15v  8 Total revenue  20(15)  $300 Total variable cost  20(8)  $160 BEP  f/(s  v)  350/ (15  8)  50 units Total revenue  50(15)  $750 1-17 Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the University for the Right to sell these programs. If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even? f  400  1,000  1,400 s  5 v  3 BEP ......

Words: 654 - Pages: 3

Premium Essay

Chap 23 Solutions

...CHAPTER 23 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | | Concepts for | |Topics |Questions | |Exercises |Problems |Analysis | |1. |Format, objectives purpose, and source |1, 2, 7, | | | |1, 2, 5, 6 | | |of statement. |8, 12 | | | | | |2. |Classifying investing, financing, and |3, 4, 5, 6, |1, 2, 3, |1, 2, 10, 16 | |1, 3, 4, 5 | | |operating activities. |16, 17, 19 |6, 7, | | | | | | | |8, 12 | | | | |3. |Direct vs. indirect methods of preparing|9, 20 |4, 5, 9, |3, 4 | |5 | | |operating activities. | |10, 11 | | | | |4. ......

Words: 18705 - Pages: 75

Free Essay

Fin 350 Week 11 Quiz 10 Chapters 22 & 23 Strayer University

...FIN 350 WEEK 11 QUIZ 10 CHAPTERS 22 & 23 STRAYER UNIVERSITY To purchase this visit here: Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 350 WEEK 11 QUIZ 10 CHAPTERS 22 & 23 STRAYER UNIVERSITY FIN 350 Week 11 Quiz 10 Chapters 22,23 - Strayer University NEW Activity mode aims to provide quality study notes and tutorials to the students of FIN 350 Week 11 Quiz 10 Chapters 22 & 23 Strayer University in order to ace their studies. FIN 350 WEEK 11 QUIZ 10 CHAPTERS 22 & 23 STRAYER UNIVERSITY To purchase this visit here: Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 350 WEEK 11 QUIZ 10 CHAPTERS 22 & 23 STRAYER UNIVERSITY FIN 350 Week 11 Quiz 10 Chapters 22,23 - Strayer University NEW Activity mode aims to provide quality study notes and tutorials to the students of FIN 350 Week 11 Quiz 10 Chapters 22 & 23 Strayer University in order to ace their studies. FIN 350 WEEK 11 QUIZ 10 CHAPTERS 22 & 23 STRAYER UNIVERSITY To purchase this visit here: Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 350 WEEK 11 QUIZ 10 CHAPTERS 22 & 23 STRAYER UNIVERSITY FIN 350 Week 11 Quiz 10 Chapters 22,23 - Strayer University NEW Activity mode aims to provide quality study notes and tutorials......

Words: 737 - Pages: 3

Free Essay

Chapt. 23 Outline

...Chapter 23 Outline Politics in the Gilded Age 1. 10 Important Facts a) Ulysses S. Grant - He was a great soldier but an inept politician. Republicans would wave “the bloody shirt” for Grant which was reviving gory memories of the civil war. Grant had won with 214 electoral votes to 80 votes for Seymour. b) James G. Blaine - He was from Maine and was a radiantly personable congressman with an elastic conscience. Blaine was one of the late 19th century's leading Republicans and champion of the moderate reformist faction of the party known as the "Half-Breeds". c) Burly “Boss” Tweed – He employed briery, graft, and fraudulent elections to milk the metropolis of as much 200 million dollars. Tweed’s luck ran out when the New York Times discovered evidence in 1871 and published. He then died behind bars. d) Democrats – They had a solid electoral base in the south and in the northern industrial cities, teeming with immigrants and controlled by well-oiled political machines. e) Republicans – Their strength laid largely in the Mid-West and the rural and small-town Northeast. Important blocs of republicans’ ballots came from the GAR- a politically potent organization with many Union veterans of the civil war. f) Grover Cleveland – He was a solid lawyer of 47 and was the first democrat to take the oath of presidential office in......

Words: 731 - Pages: 3

Premium Essay

Chapter 23 Notes

...Chapter 2 Restrictive Resp. Disorders * Resulting from basically a collapsed lung - Alterations in lung parenchyma, pleura, chest wall, or neuromuscular function * Decrease in vital capacity (VC), lung capacity (TLC), functional residual capacity (FRC), residual volume (RV) * The greater the decrease in lung volume, greater the severity of disease Fibrotic Interstitial Lung Disease * Immune reaction * Begins with injury to alveolar epithelial or capillary endothelial cells * Interstitial and alveolar wall thickening * Increased collagen bundles in interstitium * lung tissue becomes infiltrated * Persistent alveolitis leads to obliteration of alveolar capillaries, reorganization of lung parenchyma, irreversible fibrosis * Lead to large air-filled sacs (cysts) with dilated terminal and respiratory bronchioles * Occurs early, reversible * Triggering event leads to inflammatory response and increased inflammatory cells * Injury leads to increased membrane permeability and movement of fluid/debris into alveoli * Fibroblastic proliferation and deposition of large amount of collagen * Caused by increased mesenchymal cells and fibroblasts in interstitium * Alveolar walls become thickened with increased amounts of fibrous tissue * Progressive dyspnea with exercise with desaturation * Rapid-shallow breathing * Irritating, nonproductive cough * Clubbing of nail beds (40%-80%) * Bibasilar......

Words: 1914 - Pages: 8

Premium Essay

Chapter 18 Question 3 and Chapter 23 Question 1 and 5 of the Legal Environment of Business in the Information Age

...Chapter 18 The federal government regulates labels, warranties, and consumer products. Without government regulation, what abuses are likely to occur? The abuses that are likely to occur without government regulation are more illnesses, deaths and allergic reactions from not knowing what is in the product. If companies were not regulated by the government then you would have mislabeling. By this I mean you could have items that are marked low fat or low sodium when that is not the case. They would not have to include whether or not it was made with or surrounding peanuts and we all know the consequences of that. Having the government regulate labels, warranties and consumer products is very beneficial to the consumers as they are able to make more educated decisions by knowing what they are selecting. Chapter 23 Compare the minimum contacts test, as it is applied to the bricks-and-mortar activity of businesses, to their cyberspace activity. If you were a small business, seeking to sell to customers located in other states, what are some things you could do to avoid having states where these customers live require you to collect sales tax? Some of the things you could do to avoid having to pay taxes to states where the customers live is by not receiving the benefits from that state. You could also use mail-order catalog sales. If the business only sends the catalog to residents of a particular state that is not sufficient enough to subject the company......

Words: 390 - Pages: 2

Premium Essay

Ch 23 & 24

...Chapter 23 The total quality management approach to budgeting sets budgeted amounts at levels that can be achieved through reasonably efficient operations. * False The typical starting point of a master budget would be to prepare a budgeted balance sheet. * False In preparing a master budget, budgeted levels for production, manufacturing costs, and operating expenses normally are determined after preparing the sales forecast. * True A company's operating cycle is the time between purchases of direct materials and conversion of these materials back into cash. * True If the behavioral approach is employed to determine the levels at which budgeted amounts are set, then reasonable and achievable levels should be used. * True The behavioral approach to budgeting has as its goal the complete elimination of inefficiency. * False A master budget actually includes a number of related budgets. * True A budget prepared using the total quality management approach is always achievable by departments within a company. * False Flexible budgeting may be viewed as combining the concepts of budgeting with cost-volume-profit analysis. * True If the total quality management approach is employed to determine the level at which budgeted amounts are set, then absolute efficiency is assumed. * True A cash budget determines the maximum limit amount of money that can be spent during the period. * False A master budget is a comprehensive financial...

Words: 1961 - Pages: 8