• Analyze the major pros and cons of preparing company budgets. Determine at least two (2) critical budget items that you believe are essential in managing a company. Provide a rationale for your response. • Analyze the most common responsibility reporting systems. A benefit of budgeting is that it provides definite objectives for evaluating performance. Effective budgeting requires clearly defined lines of authority and responsibility. Financial budgets must be completed before the operating budgets can be prepared. The budgeted income statement indicates the expected profitability of operations for the next year. The budget itself and the administration of the budget are entirely accounting responsibilities. Why are budgets useful in the planning process? Which of the following statements about budget acceptance in an organization is true? Which of the following is not an operating budget? The production budget shows expected unit sales are 100,000. The required production units are 104,000. What are the beginning and desired ending finished goods units, respectively?

How many finished goods units should be produced during the quarter if the company desires 3,200 units available to start the next quarter? What is the proper preparation sequencing of the following budgets? Orange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities will prepare? Match the items below by entering the appropriate code letter in the space provided. Management’s plans expressed in financial terms for a specified future time period. Budgets that indicate the cash resources needed for expected operations and planned capital expenditures. A group responsible for coordinating the preparation of the budget. A set of interrelated budgets that constitute a plan of action for a specified time period. The projection of potential sales for the industry and the company’s expected share of such sales. A projection of production requirements to meet expected sales. A projection of anticipated cash flows.

A selection of strategies to achieve long-term goals. An estimate of the quantity and cost of direct materials to be purchased. An estimate of expected sales for the budget period. Budget reports comparing actual results with planned objectives should be prepared only once a year. A static budget is changed only when actual activity is different from the level of activity expected. Management by exception means that management will investigate areas where actual results differ from planned results if the items are material and controllable. Budget reports provide the feedback needed by management to see whether actual operations are on course. The manager of an investment center can improve ROI by reducing average operating assets. What is budgetary control? What is the primary difference between a static budget and a flexible budget? Nikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?

Bogey Co. recorded operating data for its Cheap division for the year. What is the ROI for the year? What is the goal of residual income? Which of the following would not be considered an aspect of budgetary control? Match the items below by entering the appropriate code letter in the space provided. The use of budgets to control operations. A projection of budget data at one level of activity. A projection of budget data for various levels of activity. A part of management accounting that involves accumulating and reporting revenues and costs on the basis of the individual manager who has the authority to make the day-to-day decisions about the items. Costs that a manager has the authority to incur within a given period of time. The review of budget reports by top management directed entirely or primarily to differences between actual results and planned objectives. The preparation of reports for each level of responsibility shown in the company’s organization chart.

"Are you looking for this answer? We can Help click Order Now"

UK BEST WRITING