Hand-In Assignment - Three Question One Billy Adams‚ controller for Westcott Inc.‚ prepared the following budget for manufacturing costs at two different levels of activity for 2010: DIRECT LABOUR HOURS Level of Activity 50‚000 100‚000 Direct Materials $300‚000 $600‚000 Direct Labour 200‚000 400‚000 Depreciation (plant) 100‚000 100‚000 Subtotal $600‚000 $1‚100‚000 MACHINE HOURS Level of Activity 200‚000 300‚000 Maintaining equipment
Premium Total cost Costs Cost accounting
QUESTION 1 – Budgeting Process and Budgetary Control I have been asked to advise two entirely different businesses about the benefits and problems associated with what is termed the “traditional approach to budgeting and budgetary control”. One of the businesses operates in a very stable and static market place‚ where there is little change in either products or demand year on year‚ whereas the other business operates in a very dynamic‚ rapidly changing‚ innovative environment. If my findings
Premium Management Accounts receivable Process management
would use information gathered from the master budget to prepare a budgeted balance sheet. A budgeted balance sheet would be used to project the financial status of Riordan. To improve the quality of Riordan’s master budget‚ managers need to know. Why the budget is being prepared? Who will read and use it? How the information will be presented? Where the information can be found?At Riordan there are two factors for implementing the 2005 fiscal budget‚ which are communication and support. Communication
Premium Generally Accepted Accounting Principles Balance sheet Inventory
Case Study 3 - Body Glove This exercise provided me with a different perspective of planning by defining the destination and charting the routes that lead to it. Prior to this‚ I conceived a budget as a mere resource allocation framework to calculate future costs based on forecasted sales. Learning Lessons Linking it Together If we were to place Body Glove in a Balanced ScoreCard‚ the company appears to have focused mainly on the customer dimension leaving other areas unattended (Figure 1). This
Premium Strategic management Budget Balanced scorecard
grade here Date Sent to Lecturer: Comments: Table of Contents 1. Operation Budget Sales Budget Production Budget Direct Materials Purchases Budget Direct labour Budget Manufacturing Overhead Budget Ending Finished Goods Inventory Budget Cost Of Goods Sold Budget Budgeted Income Statement Cash Budget 2. Report on the impact of Cost Structures 3. Report on Budget versus Actual Outcomes 4.
Premium Variable cost Fixed cost Direct material price variance
Appendix 3 – Budgets and templates Master budget with profit projections Big Red Bicycle Pty Ltd Master Budget FY 2011/2012 FY Q1 Q2 Q3 Q4 REVENUE Commissions (2% sales) 60‚000 15‚000 15‚000 15‚000 15‚000 Direct wages fixed 200‚000 50‚000 50‚000 50‚000 50‚000 Sales 3‚000‚000 750‚000 750‚000 750‚000 750‚000 Cost of Goods Sold 400‚000 100‚000 100‚000 100‚000 100‚000 Gross Profit 2‚340‚000 585‚000 585‚000 585‚000 585‚000 EXPENSES General & Administrative Expenses Accounting
Premium Tax Earnings before interest and taxes Budget
75‚000 July 45‚000 Of the units budgeted‚ 40% are sold by the Southern Division at an average price of $15 per unit and the remainder 60% are sold by the Eastern Division at an average price of $12 per unit. Instructions Prepare separate sales budgets for each division and for the company in total for the second quarter of 2008. PART II: Kelso Company manufactures two products‚ (1) Regular and (2) Deluxe. The budgeted units to be produced are as follows: Units of Product 2008 Regular Deluxe
Premium Variable cost Costs Expense
Irina Vanessa Lintermanns Verschüer A01200345 September 26‚ 2011 Homework: Questions of budgeting 1. Discuss some of the major benefits to be gained from budgeting. It motivates the executives to define the basic objectives of the company‚ it gives a structure to the company by defining the responsibilities of each of the parts that forms the organization‚ it motivates and rises the participation of all workers of the company‚ it obligates to maintain a control document with historical
Premium Management Budget Time
ACCT504 Practice Case Study 3 on Cash Budgeting This is a practice case study to help you become familiar with how to create a comprehensive cash budget. The cash budget relates to TCO D and is discussed in Chapter 4. The actual case study assignment should be uploaded to the Week 6 Assignment Dropbox by 11:59 p.m. mountain time on Sunday at the end of Week 6. You are encouraged to use the Excel template file provided in Doc Sharing. The Cambridge Company has budgeted sales revenues as follows
Premium Budget Sales Case study
* An ISO 9001:2008 Company INDUSTRIAL PROFILE To collect and disseminate both domestic as well as international marketing intelligence benefits of MSMEs. This cell‚ in addition to spreading awareness about various programmers/schemes for MSMEs‚ will specifically maintain database and disseminate information on the following. National small industries corporation (NSIC)‚ AN ISO 9001: 2008 certified company and a govt. of India enterprise has been working to fulfill
Premium Data Budget Marketing