Lecture Fundamentals of cost accounting (4th edition): Chapter 13 - Lanen, Anderson, Maher

(BQ) Chapter 13 - Planning and budgeting. Budgeting is necessary for success. In Chapter 13 we discuss the planning purpose of the budgeting process. We show how a master budget is developed and how it fits into the overall plan for achieving the organizational goals.
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Lecture Fundamentals of cost accounting (4th edition): Chapter 13 - Lanen, Anderson, Maher© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in anymanner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. PlanningandBudgeting Chapter13 PowerPoint 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., CPAMcGrawHill/Irwin Copyright©2014byTheMcGrawHillCompanies,Inc.Allrightsreserved. LearningObjectivesLO 13-1 Understand the role of budgets in overall organization plans.LO 13-2 Understand the importance of people in the budgeting process.LO 13-3 Estimate sales.LO 13-4 Develop production and cost budgets.LO 13-5 Estimate cash flows.LO 13-6 Develop budgeted financial statements.LO 13-7 Explain budgeting in merchandising and service organizations.LO 13-8 Explain why ethical issues arise in budgeting.LO 13-9 Explain how to use sensitivity analysis to budget under uncertainty. 133 LO13-1 Budgets LO 13-1 Understandtheroleofbudgetsinoverallorganizationplans. We We focus focus on on the the planning planning purpose purpose ofof the the budgeting budgeting process. process. ForFor our our purposes purposes here, here, aa budget budget is is simply simply the the plan, plan, stated stated in in financial financial terms, terms, of of how how the the organization organization expects expects to to carry carry out out its its activities activities and and meet meet the the financial financial goals goals established established inin the the planning planning process. process. We Weshow showhowhowaamaster masterbudget budgetisisdeveloped developedand andhow howititfits fitsinto into the theoverall overallplan planfor forachieving achievingorganization organizationgoals. goals.Before Beforewe we investigate investigatethe thedetails detailsof ofdeveloping developingaamaster masterbudget, ...