10ManagerialAccounting-Student_财务管理_经管

PowerPointAuthors:SusanCoomerGalbreath,Ph.D.,CPACharlesW.Caldwell,D.B.A.,CMAJonA.Booker,Ph.D.,CPA,CIACynthiaJ.Rooney,Ph.D.,CPACopyright©2014byTheMcGraw-HillCompanies,Inc.Allrightsreserved.FlexibleBudgetsandPerformanceAnalysisChapter1010-2LearningObjective10-1Prepareaflexiblebudget.10-3CharacteristicsofFlexibleBudgetsPlanningbudgetsarepreparedforasingle,plannedlevelofactivity.Performanceevaluationisdifficultwhenactualactivitydiffersfromtheplannedlevelofactivity.Hmm!Comparingstaticplanningbudgetswithactualcostsislikecomparingapplesandoranges.10-4Improveperformanceevaluation.Maybepreparedforanyactivitylevelintherelevantrange.Showcoststhatshouldhavebeenincurredattheactuallevelofactivity,enabling“applestoapples”costcomparisons.Helpmanagerscontrolcosts.Let’slookatLarry’sLawnService.CharacteristicsofFlexibleBudgets10-5Larry’sLawnServiceprovideslawncareinaplannedcommunitywherealllawnsareapproximatelythesamesize.AttheendofMay,LarrypreparedhisJunebudgetbasedonmowing500lawns.Sinceallofthelawnsaresimilarinsize,Larryfeltthatthenumberoflawnsmowedinamonthwouldbethebestwaytomeasureoverallactivityforhisbusiness.Larry’sBudgetDeficienciesoftheStaticPlanningBudget10-6DeficienciesoftheStaticPlanningBudgetLarry’sPlanningBudget10-7DeficienciesoftheStaticPlanningBudgetLarry’sActualResults10-8DeficienciesoftheStaticPlanningBudgetLarry’sActualResultsComparedwiththePlanningBudget10-9DeficienciesoftheStaticPlanningBudgetLarry’sActualResultsComparedwiththePlanningBudgetF=Favorablevariancethatoccurswhenactualcostsarelessthanbudgetedcosts.U=Unfavorablevariancethatoccurswhenactualcostsaregreaterthanbudgetedcosts.F=Favorablevariancethatoccurswhenactualrevenueisgreaterthanbudgetedrevenue.10-10DeficienciesoftheStaticPlanningBudgetLarry’sActualResultsComparedwiththePlanningBudgetSincethesevariancesareunfavorable,hasLarrydoneapoorjobcontrollingcosts?Sincethesevariancesarefavorable,hasLarrydoneagoodjobcontrollingcosts?10-11Idon’tthinkIcananswerthequestionsusingastaticbudget.Actualactivityisaboveplannedactivity.So,shouldn’tthevariablecostsbehigherifactualactivityishigher?DeficienciesoftheStaticPlanningBudget10-12Therelevantquestionis...“Howmuchofthecostvariancesareduetohigheractivityandhowmuchareduetocostcontrol?”Toanswerthequestion,wemustthebudgettotheactuallevelofactivity.DeficienciesoftheStaticPlanningBudget10-13HowaFlexibleBudgetWorksToabudget,weneedtoknowthat:–Totalvariablecostschangeindirectproportiontochangesinactivity.–Totalfixedcostsremainunchangedwithintherelevantrange.Fixed10-14Let’sprepareabudgetforLarry’sLawnService.HowaFlexibleBudgetWorks10-15PreparingaFlexibleBudgetLarry’sFlexibleBudget10-16QuickCheckWhatshouldthetotalwagesandsalariescostbeinaflexiblebudgetfor600lawns?a.$18,000.b.$20,000.c.$23,000.d.$25,000.10-17LearningObjective10-2Prepareareportshowingactivityvariances.10-18ActivityVariancesPlanningbudgetrevenuesandexpensesFlexiblebudgetrevenuesandexpensesThedifferencesbetweenthebudgetamountsarecalledactivityvariances.10-19Let’susebudgetingconceptstocomputeactivityvariancesforLarry’sLawnService.ActivityVariances10-20ActivityVariancesLarry’sFlexibleBudgetComparedwiththePlanningBudget10-21Larry’sFlexibleBudgetComparedwiththePlanningBudgetActivityVariancesActivityandrevenueincreaseby10percent,butnetoperatingincomeincreasesbymorethan10percentduetothepresenceoffixedcosts.10-22LearningObjective10-3Prepareareportshowingrevenueandspendingvariances.10-23RevenueandSpendingVariancesFlexiblebudgetrevenueActualrevenueThedifferenceisarevenuevariance.FlexiblebudgetcostActualcostThedifferenceisaspendingvariance.10-24RevenueandSpendingVariancesLet’susebudgetingconceptstocomputerevenueandspendingvariancesforLarry’sLawnService.10-25RevenueandSpendingVariancesLarry’sFlexibleBudgetComparedwiththeActualResults$1,750favorablerevenuevariance10-26Larry’sFlexibleBudgetComparedwiththeActualResultsRevenueandSpendingVariancesSpendingvariances10-27LearningObjective10-4Prepareaperformancereportthatcombinesactivityvariancesandrevenueandspendingvariances.10-28Now,let’susebudgetingconceptstocombinetherevenueandspendingvariancesreportsforLarry’sLawnService.APerformanceReportCombiningActivityandRevenueandSpendingVariances10-29APerformanceReportCombiningActivityandRevenueandSpendingVariances10-30APerformanceReportCombiningActivityandRevenueandSpendingVariances50lawns×$75perlawn50lawns×$30perlawn10-31$43,000actual-$41,250budgetAPerformanceReportCombiningActivityandRevenueandSpendingVariances10-32PerformanceReportsinNon-ProfitOrganizationsNon-profitorganizationsmayreceivefundingfromsourcesotherthanthesaleofgoodsandservices,sorevenuesmayconsistofbothfixedandvariableelements.UniversitiesTuitionandfeesDonationsStatefundingEndowments10-33PerformanceReportsinCostCentersPerformancereportsareoftenpreparedforcostcenters.Thesereportsshouldbepreparedusingthesameprinciplesdiscussedsofar,exceptforthefactthatthesereportswillnotcontainrevenueornetoperatingincomevariances.10-34LearningObjective10-5Prepareaflexiblebudgetwithmorethanonecostdriver.10-35Morethanonecostdrivermaybenee