Bài giảng môn Kế toán, kiểm toán - Chapter 14: Cost planning

© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.Chapter 14Cost PlanningPowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPABudgeting Control Steps taken by management to ensure that objectives are attained. Planning Developing objectives for acquisitionand use of resources.A budget is a comprehensive financialplan for achieving the financial andoperational goals of an organization.LO 114-3BenefitsEnhanced managerialresponsibilityAssignment of decisionmaking responsibilitiesPerformanceevaluationCoordinationof activitiesLO 2Budgeting14-4Time consuming, but enhances employeemotivation and acceptance of goals.Flow of Budget DataLO 2Participative Budgeting14-5LO 4The Budgeting ProcessDirectMaterialsBudgetProduction Budget(Manufacturer)Operating ExpenseBudgetDirectLaborBudgetManufacturingOverheadBudgetSales BudgetCost of GoodsSold BudgetBudgeted Balance SheetBudgeted Income StatementBudgeted Statement of Cash FlowsPurchases Budget(Merchandiser)14-6SalesBudgetEstimatedUnit SalesEstimatedUnit PriceAnalysis of economic and market conditions+Forecasts of customer needs provided by marketing personnelLO 4Sales Budget14-7BeginningbalanceAvailableEndingbalanceAdditions+=Withdrawals_=The basic inventory flow model is usedfor the production and purchases budgets.EndingbalanceWithdrawalsLO 5Inventory Flows 14-8 Production must be adequate to meet budgeted sales and to provide sufficient ending inventory. Budgeted product sales in units+ Desired product units in ending inventory= Total product units needed– Product units in beginning inventory= Product units to produceLO 5The Production Budget14-9The materials purchases budget is based on production quantity and desired materials inventory levels. Units to produce × Material needed per unit = Material needed for units to produce+ Desired units of material in ending inventory= Total units of material needed– Units of material in beginning inventory= Units of material to purchaseLO 5Raw Materials Purchases Budget14-10Selling expense budgets contain both variable and fixed items.Variable items: shipping costs and sales commissions.Fixed items: advertising and sales salaries.Administrative expense budgets contain mostly fixed items.Executive salaries and depreciation on company offices.LO 6Selling and Administrative(S&A) Expense Budget14-11LO 9Standard CostsStandard Costs are Based on carefullypredetermined amounts.Used for planning material, labor, and overhead requirements.The expected levelof performance.Benchmarks formeasuring performance.14-12Are standards the same as budgets? A standard is the expected cost for one unit.A budget is the expected cost for all units.LO 9Standard Costs14-13 Accountants, engineers, personnel administrators, and production managers combine efforts to set standards based on experience and expectations. LO 10Developing Standards14-14QuantityStandardsUse product design specifications.PriceStandardsFinal, deliveredcost of materials,net of discounts.LO 11Costing Products withStandard Costs14-15RateStandardsUse wage surveys andlabor contracts.TimeStandardsUse time and motion studies foreach labor operation.LO 11Costing Products withStandard Costs14-16RateStandardsThe rate is the variable portion of the predetermined overhead rate.ActivityStandardsThe activity is the base used to calculate the predetermined overhead.LO 11Costing Products withStandard Costs14-17QualityControlInventoryControlMachineUsageServiceLevelsSalesLevelsSafetyGoalsTrainingLevelsLO 11Other Uses of Standards14-18End of Chapter 1414-19