管理会计案例培训教材英文版(ppt 75)
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管理会计案例教材英文版
Standard
This variance is unfavorable because the actual cost
exceeds the standard cost.
Product Cost
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
A General Model for Variance Analysis
Actual Quantity ×
Actual Price
Actual Quantity ×
Standard Price
Standards vs. Budgets
Are standards the same as budgets?
Irwin/McGraw-Hill
A standard is the expected cost for one
unit. A budget is the expected cost for all
Variance Analysis Cycle
Identify questions
Receive explanations
Take corrective
actions
Analyze variances
Begin
Prepare standard cost performance
report
Conduct next period’s
Inputs
A
Standard Quantity or Hours
管理会计英语英文版2ppt课件
Thus, the change in owners’ equity is explained by net income, owner contributions, and owner withdrawals. Because owners’ equity must equal assets minus liabilities (net assets), the changes in one side of the equation must equal the changes in the other side. Therefore, changes in net income, owner contributions, and owner withdrawals also explain changes in net assets.
depreciation expense per year=
(Cost - Salvage value) Useful life in years
Balance Sheet
As you know, the balance sheet reports assets, liabilities, and owners’ equity at a moment in time. The income statement summarizes revenue and expense transactions that occur during a period of time. Since revenue and expense transactions affect
There are several commonly used methods: straight-line, units-of-production , sum-of-theyears’ digits and declining-balance.
depreciation expense per year=
(Cost - Salvage value) Useful life in years
Balance Sheet
As you know, the balance sheet reports assets, liabilities, and owners’ equity at a moment in time. The income statement summarizes revenue and expense transactions that occur during a period of time. Since revenue and expense transactions affect
There are several commonly used methods: straight-line, units-of-production , sum-of-theyears’ digits and declining-balance.
管理会计英语课件0
• Allows great discretion to design systems that provide information for helping employees and managers make decisions
• Forward looking
A Brief History
Financial v. Management Accounting
Financial Accounting
Management Accounting
• Communicates economic information to individuals and organizations that are external to the direct operations of the company
பைடு நூலகம்
Management Accounting Information
– Management accounting provides both financial information and nonfinancial information
– The role of management information supports strategic (planning), operational (operating) and control (performance evaluation) management decision making
• In short, management accounting information is pervasive and purposeful
Management Accounting Information
• Forward looking
A Brief History
Financial v. Management Accounting
Financial Accounting
Management Accounting
• Communicates economic information to individuals and organizations that are external to the direct operations of the company
பைடு நூலகம்
Management Accounting Information
– Management accounting provides both financial information and nonfinancial information
– The role of management information supports strategic (planning), operational (operating) and control (performance evaluation) management decision making
• In short, management accounting information is pervasive and purposeful
Management Accounting Information
管理会计英语(英文版课件)1
Accounting-related Lenders Consultants Analysts Traders Managers Directors Underwriters Planners Appraisers
Financial Statements
Financial statements report on the financial performance and condition of an organization. There are four major financial statements Income Statement Balance Sheet Statement of Owner’s Equity Statement of Cash Flows
The system for recording debits and credits follows from the accounting equation: Assets = Liabilities + Owner’s Equity
Equity
Owner’s capital- Owner’s withdrawals+ RevenuesExpenses
Business Profit
Revenues: Amounts earned from selling products or services -Expenses: Costs incurred with revenues =Profit: Amounts earned from revenues less expenses incurred Loss occurs when expenses are more than revenues
财务管理会计案例教材英文版(ppt 70)
A General Model for Variance Analysis
Actual Quantity ×
Actual Price
Actual Quantity ×
Standard Price
Standard Quantity ×
Standard Price
Price Variance
Quantity Variance
Practical standards should be set at levels
that are currently attainable with reasonable and efficient effort.
Production manager
Setting Standard Costs
or Rate
AxB
Standard Cost
per Unit
Direct materials Direct labor Variable mfg. overhead
Total standard unit cost
3.0 lbs. 2.5 hours 2.5 hours
$ 4.00 per lb. $ 14.00 per hour 3.00 per hour $
Rate Standards
Time Standards
Use wage surveys and labor contracts.
Use time and motion studies for each labor operation.
Setting Variable Overhead Standards
Standard Cost Card – Variable Production Cost
管理会计双语版总结PPT
3
第四页，共七十三页。
Chapter 3 :Determining Costs of Products
Job order costing
Direct material : trace Direct labor : trace Manufacturing overhead : allocate
Cost pool and allocation base Actual cost system vs. normal cost system Over-apply vs. under-apply
Three formulas (page 136)
Sensitivity analysis
8 第九页，共七十三页。
CVP Equations
Sales – Variable Costs – Fixed Costs = target profit
(SP/unit * units) – (VC/unit * units) – FC = target profit
Chapter 1: Introduction
Why management accounting? Origin and evolution of management
accounting Contrasting financial and management
accounting Ethical standards for management
Accounting rate of return
17
第十八页，共七十三页。
Chapter 9 : The Operating Budget
Different approaches to budgeting
第四页，共七十三页。
Chapter 3 :Determining Costs of Products
Job order costing
Direct material : trace Direct labor : trace Manufacturing overhead : allocate
Cost pool and allocation base Actual cost system vs. normal cost system Over-apply vs. under-apply
Three formulas (page 136)
Sensitivity analysis
8 第九页，共七十三页。
CVP Equations
Sales – Variable Costs – Fixed Costs = target profit
(SP/unit * units) – (VC/unit * units) – FC = target profit
Chapter 1: Introduction
Why management accounting? Origin and evolution of management
accounting Contrasting financial and management
accounting Ethical standards for management
Accounting rate of return
17
第十八页，共七十三页。
Chapter 9 : The Operating Budget
Different approaches to budgeting
管理会计英语03ppt课件
production
• With such variety, managers need to understand the costs of individual products so that they can assess product and customer profitability
– Job order costing – Process costing
• Many companies continue to use these two systems
Cost Management Systems
• All cost systems work in essentially the same way:
Bidding Using Job Order Costing
• Firms are sometimes required to bid on jobs before customers decide to place an order with them
• Costs need to be estimated for each job in order to prepare a bid
– Expense categories are developed and then expenses are mapped to service departments, production centers, or activities
– Expenses are then attached to cost objects
Direct and Indirect Costs
• Direct costs can be easily traced to a cost object
• With such variety, managers need to understand the costs of individual products so that they can assess product and customer profitability
– Job order costing – Process costing
• Many companies continue to use these two systems
Cost Management Systems
• All cost systems work in essentially the same way:
Bidding Using Job Order Costing
• Firms are sometimes required to bid on jobs before customers decide to place an order with them
• Costs need to be estimated for each job in order to prepare a bid
– Expense categories are developed and then expenses are mapped to service departments, production centers, or activities
– Expenses are then attached to cost objects
Direct and Indirect Costs
• Direct costs can be easily traced to a cost object
管理会计英文课件
$ 0.026 $ 104 ???? $ 40 ???? ???? $ 25
12-9
Identifying Relevant Costs
Which costs and benefits are relevant in Cynthia’s decision? The cost of the car is a sunk cost and is not relevant to the current decision. The annual cost of insurance is not relevant. It will remain the same if she drives or takes the train.
12-3
Relevant Costs and Benefits
A relevant cost is a cost that differs between alternatives. A relevant benefit is a benefit that differs between alternatives.
Relaxing on the train is relevant even though it is difficult to assign a dollar value to the benefit.
The kennel cost is not relevant because Cynthia will incur the cost if she drives or takes the train.
However, the cost of gasoline is clearly relevant if she decides to drive. If she takes the train, the cost would not be incurred, so it varies depending on the decision.
管理会计案例教材英文
or Rate
AxB
Standard Cost
per Unit
Direct materials Direct labor Variable mfg. overhead
Total standard unit cost
3.0 lbs. 2.5 hours 2.5 hours
$ 4.00 per lb. $ 14.00 per hour 3.00 per hour $
Price Standards
Quantity Standards
Final, delivered cost of materials, net of discounts.
Use product design specifications.
Setting Direct Labor Standards
Rate Standards
Activity Standards
The rate is the variable portion of the predetermined overhead
rate.
The activity is the base used to calculate
the predetermined overhead.
I agree. Ideal standards, that are based on perfection, are unattainable and discourage most employees.
Human Resources Manaterial Standards
Practical standards should be set at levels
that are currently attainable with reasonable and efficient effort.
AxB
Standard Cost
per Unit
Direct materials Direct labor Variable mfg. overhead
Total standard unit cost
3.0 lbs. 2.5 hours 2.5 hours
$ 4.00 per lb. $ 14.00 per hour 3.00 per hour $
Price Standards
Quantity Standards
Final, delivered cost of materials, net of discounts.
Use product design specifications.
Setting Direct Labor Standards
Rate Standards
Activity Standards
The rate is the variable portion of the predetermined overhead
rate.
The activity is the base used to calculate
the predetermined overhead.
I agree. Ideal standards, that are based on perfection, are unattainable and discourage most employees.
Human Resources Manaterial Standards
Practical standards should be set at levels
that are currently attainable with reasonable and efficient effort.
《管理会计案例分析》课件
《管理会计案பைடு நூலகம்分析》 PPT课件
本课程为《管理会计案例分析》的PPT课件，通过案例分析介绍管理会计的概 述、应用、实践意义以及未来研究方向。
管理会计概述
管理会计是一种用于帮助管理者做出决策和实施控制的会计方法。与财务会 计相比，管理会计更加注重内部管理和绩效评估。
管理会计的应用
成本管理
通过成本控制和成本分析，帮助企业降低成本、提高效率。
3
案例三：预算编制
通过问题描述、分析方法和解决方案，指导企业进行预算编制与执行。
管理会计的实践意义
1 提高企业效益
帮助企业降低成本、提高生产效率，从而增加企业的盈利能力。
2 风险管理
通过预测和评估风险，帮助企业降低经营风险并提供决策支持。
3 决策支持
提供财务和非财务信息，帮助管理者做出准确、科学的决策。
# Management Accounting Case Analysis PPT Presentation ## 1. Overview of Management Accounting - Definition of management accounting - Difference between management accounting and financial accounting - Role of management accounting ## 2. Application of Management Accounting - Cost management - Cost control - Cost analysis - Performance management - Performance evaluation - Performance incentives - Budget management - Budgeting - Budget execution
本课程为《管理会计案例分析》的PPT课件，通过案例分析介绍管理会计的概 述、应用、实践意义以及未来研究方向。
管理会计概述
管理会计是一种用于帮助管理者做出决策和实施控制的会计方法。与财务会 计相比，管理会计更加注重内部管理和绩效评估。
管理会计的应用
成本管理
通过成本控制和成本分析，帮助企业降低成本、提高效率。
3
案例三：预算编制
通过问题描述、分析方法和解决方案，指导企业进行预算编制与执行。
管理会计的实践意义
1 提高企业效益
帮助企业降低成本、提高生产效率，从而增加企业的盈利能力。
2 风险管理
通过预测和评估风险，帮助企业降低经营风险并提供决策支持。
3 决策支持
提供财务和非财务信息，帮助管理者做出准确、科学的决策。
# Management Accounting Case Analysis PPT Presentation ## 1. Overview of Management Accounting - Definition of management accounting - Difference between management accounting and financial accounting - Role of management accounting ## 2. Application of Management Accounting - Cost management - Cost control - Cost analysis - Performance management - Performance evaluation - Performance incentives - Budget management - Budgeting - Budget execution
管理会计英语培训课程PPT课件(45张)
Short-term and Long-term Pricing Considerations
• The length of time a firm must commit its production capacity to fill that order is important because a long-term capacity commitment to a marginally profitable order may:
– Managers make decisions about establishing or accepting a price for their products
– Even when prices are set by the market and the firm has little or no influence on product prices, management still has to decide the best mix of products to manufacture and sell
– Such a firm is a price taker, and it chooses its product mix given the prices set in the marketplace for its products
Ability To Influence Prices
– Firms in an industry with relatively little competition, who enjoy large market shares and exercise industry leadership, must decide what prices to set for their products
管理会计案资料新例培训教材英文版(ppt 75)
the manager can actually control to a significant extent.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Choosing the Budget Period
Operating Budget
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Participative Budget System
Top Management
Middle Management
Middle Management
Supervisor Supervisor Supervisor Supervisor
Selling and Administrative
Budget
Manufacturing Overhead Budget
Irwin/McGraw-Hill
Cash Budget
Budgeted Financial Statements
© The McGraw-Hill Companies, Inc., 2000
Flow of Budget Data
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Budget Committee
A standing committee responsible for
❖overall policy matters relating to the budget ❖coordinating the preparation of the budget
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Choosing the Budget Period
Operating Budget
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Participative Budget System
Top Management
Middle Management
Middle Management
Supervisor Supervisor Supervisor Supervisor
Selling and Administrative
Budget
Manufacturing Overhead Budget
Irwin/McGraw-Hill
Cash Budget
Budgeted Financial Statements
© The McGraw-Hill Companies, Inc., 2000
Flow of Budget Data
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Budget Committee
A standing committee responsible for
❖overall policy matters relating to the budget ❖coordinating the preparation of the budget
管理会计案例培训教材英文版(ppt 75)
All sales are on account. Royal’s collection pattern is:
70% collected in the month of sale, 25% collected in the month following sale, 5% is uncollectible.
Advantages of Budgeting
Communicating plans
Define goal and objectives
Think about and plan for the future
Coordinate activities
Advantages
Means of allocating resources
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
June 30,000
Quarter 100,000
The Production Budget
Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
Budget
Manufacturing Overhead Budget
The Master Budget
Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
Selling and Administrative
70% collected in the month of sale, 25% collected in the month following sale, 5% is uncollectible.
Advantages of Budgeting
Communicating plans
Define goal and objectives
Think about and plan for the future
Coordinate activities
Advantages
Means of allocating resources
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
June 30,000
Quarter 100,000
The Production Budget
Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
Budget
Manufacturing Overhead Budget
The Master Budget
Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
Selling and Administrative
管理会计英文版
5000
2500
Manufactures
1000 Fuels and mining products
500
Agricultural products
250
100
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Source: World Trade Organization, International Trade Statistic 2010
• Identify job descriptions as either line or staff positions.
• Explain the concepts of lean production: Six Sigma, e-commerce, enterprise systems, and enterprise risk management. • Explain the importance of ethical standards in an advanced economy.
1-11
1.1 Information needs of managers and other users
1. Background
• Globalization –> More competition – >Timely, up to date, and relevant information needed
• For final exam • 15 MCQs 30 points • 5-6 Calculation questions 70 points
1-3
Main Contents of MA1
财务管理会计案例教材英文版
Final, delivered cost of materials, net of discounts.
Use product design specifications.
Setting Direct Labor Standards
Rate Standards
Time Standards
Use wage surveys and labor contracts.
Use time and motion studies for each labor operation.
Setting Variable Overhead
Standards
Rate Standards
Activity Standards
The rate is the variable portion of the predetermined overhead
But why are variances
having responsibility for incurring the costs.
important to me?
Variance Analysis Cycle
Identify questions
Total standard unit cost
3.0 lbs. 2.5 hours 2.5 hours
$ 4.00 per lb. $ 14.00 per hour 3.00 per hour $
12.00 35.00
7.50 54.50
Standards vs. Budgets
Are standards the same as budgets?
might look like this:
管理会计英文课件
2. Allow the weakest link to set the tempo.
1. Identify the weakest link.
3. Focus on improving the weakest link. 4. Recognize that the weakest link is no longer so.
Maintain professional competence.
Competence
Provide accurate, clear, concise, and timely decision support information.
Follow applicable laws, regulations and standards.
Managerial Accounting and the Business Environment
Chapter 1
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Customer Value Propositions
Board of Directors
Incentives and monitoring for
Top Management
To pursue objectives of
Stockholders
1-16
Enterprise Risk Management
Should I try to avoid the risk, share the risk, accept the risk, or reduce the risk?
管理会计英语课件01
A Brief History
• In 19th century America, textile mill owners kept detailed records of costs to direct efficiency improvement activities and to provide a basis for product pricing
Changing Focus
• Traditionally, management accounting information has been financial information – Denominated in a currency such as $ (dollars), £ (pound sterling), ¥ (yen), or € (euro) • Management accounting information has now expanded to encompass information that is operational or physical (nonfinancial) information: – Quality and process times – More subjective measurements, such as: • Customer satisfaction • Employee capabilities • New product performance
Management Accounting: Information That Creates Value
Chapter 1
Management Accounting Information
• The institute of Management Accountants has defined management accounting as:
《管理会计案例分析》PPT课件
（3）被预算评价者：全面预算管理考评是根据企业 全面预算目标,结合各级部门领导岗位的责、权、利, 运用价值分解的原理和目标管理办法,自上而下,把全 面预算目标层层分解,设置关键业绩的具体考核指标 。在确定考核指标时要充分结合绝对和相对指标,定 量和定性指标,并加强对销售收入、存货周转、存货 价格变化、应收账款等运营指标的考核。通过考核, 一方面可以及时地收到相关执行信息的反馈并实施 相应的防范措施,可以发现和分析问题,对下一期预算 工作和经营活动地改进提出建议。另一方面,也是对 员工在实施全面预算管理情况的一种评价,对其以往 的执行情况进行奖罚。
通过本案例的分析，你认为:
1.施乐公司中各个部门之间应该怎样进行沟通?在 预算过程中，怎样对一些关键的计划假设信息进 行归集和共享?
1、（1）如何沟通：通过预算来进行沟通。预算可 以分成三个阶段：预算编制，预算执行和预算考核 。在每一个阶段中，都需要施乐公司各部门间进行 充分的沟通，以此来保证预算目标的实现。具体说 来：
Ⅰ、预算
企业编制预算，一般应按照“上下结合、分级编制、 逐级汇总”的程序进行。首先，施乐公司董事会根据 企业发展战略提出下一年度企业财务预算目标，确 定财务预算编制的政策，并由预算管理层下达各部 门。然后，各部门结合自身特点提出详细的本部门 财务预算方案上报企业财务管理部门。接着，企业 财务管理部门对各部门上报的财务预算方案进行审 查、汇总，提出综合平衡的建议，并将财务预算方 案报预算管理层讨论。在此基础上，企业财务管理 部门正式编制企业年度财务预算草案，提交董事会 或总经办审议批准。最后，企业财务管理部门将审 议批准的年度总预算分解成一系列的指标体系，由
预算参与方最高决策层预算委员会责任中心预算编制角色委托人代理人委托代理人功能审批评审编制控制使用预算进行决策者角色委托人代理人功能监控执行考核被预算评价者角色委托人代理人功能考核被考核在预算管理中预算目标的确定是预算编制的起点也是预算控制和评价的标准
财务管理会计案例培训课件英文版
costs of the activity involved.
Product-Level Activity
Organizationsustaining Activity
Customer-Level Activity
Identifying Activity to Include
Activity Cost Pool is a “bucket” in
Factory equipment depreciation
$300,000
Percent consumed by customer orders 20%
$ 60,000
Assigning Costs to Activity Cost Pools
Using the total costs and percentage consumption of overhead, costs are assigned to activity pools.
and then to products.
Departmental Overhead Rates
Indirect
Stage One:
Labor
Costs assigned
to pools
Cost pools
Department 1
Indirect Materials
Department 2
Other Overhead
Activity Based Costing
Departmental Overhead Rates
Plantwide Overhead
Rate
Overhead Allocation
Plantwide Overhead Rate
Product-Level Activity
Organizationsustaining Activity
Customer-Level Activity
Identifying Activity to Include
Activity Cost Pool is a “bucket” in
Factory equipment depreciation
$300,000
Percent consumed by customer orders 20%
$ 60,000
Assigning Costs to Activity Cost Pools
Using the total costs and percentage consumption of overhead, costs are assigned to activity pools.
and then to products.
Departmental Overhead Rates
Indirect
Stage One:
Labor
Costs assigned
to pools
Cost pools
Department 1
Indirect Materials
Department 2
Other Overhead
Activity Based Costing
Departmental Overhead Rates
Plantwide Overhead
Rate
Overhead Allocation
Plantwide Overhead Rate
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Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
April 20,000
10,000 30,000
4,000 26,000
Irwin/McGraw-Hill
May 50,000
June 30,000
Quarter 100,000
Budgeted sales Desired percent Desired inventory
50,000 20%
10,000
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
The Sales Budget
Budgeted sales (units)
Selling price per unit
Total sales
April
20,000
$ 10 $200,000
May
50,000
$ 10 $500,000
June
30,000
$ 10 $300,000
Quarter
100,000
Participative Budget System
Top Management
Middle Management
Middle Management
Supervisor Supervisor Supervisor Supervisor
Flow of Budget Data
Irwin/McGraw-Hill
Think about and plan for the future
Coordinate activities
Advantages
Means of allocating resources
Uncover potential bottlenecks
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Master Budget
Sales Budget
Selling and Administrative
Budget
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Advantages of Budgeting
Communicating plans
Define goal and objectives
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
10,000 46,000
June 30,000
Quarter 100,000
5,000 35,000
6,000 29,000
5,000 105,000
4,000 101,000
Irwin/McGraw-Hill
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Master Budget
Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
or monthly budgets.
2002
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Choosing the Budget Period
Continuous or Perpetual Budget
1999
2000
2001
2002
The Sales Budget
Detailed schedule showing expected sales for the coming periods
expressed in units and dollars.
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
Royal Company wants ending inventory to be equal to 20% of the following month’s budgeted sales in units.
Selling and Administrative
Budget
Manufacturing Overhead Budget
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Cash Budget
Budgeted Financial Statements
© The McGraw-Hill Companies, Inc., 2000
管理会计案例培训教材英文版(ppt 75)
The Basic Framework of Budgeting
Master Budget Summary of a company’s plans.
Detail
Budget Detail
Budget
Production
Detail Budget
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May 50,000
June 30,000
Quarter 100,000
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
The Master Budget
Sales Budget
Ending Inventory
Budget
Direct Materials Budget
Production Budget
Direct Labor Budget
Selling and Administrative
Budget
Manufacturing Overhead Budget
© The McGraw-Hill Companies, Inc., 2000
The Budget Committee
A standing committee responsible for
❖overall policy matters relating to the budget ❖coordinating the preparation of the budget
Responsibility Accounting
Managers should be held responsible for those items — and only those items — that
the manager can actually control to a significant extent.
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
June 30,000
Quarter 100,000
Irwin/McGraw-Hill
© The McGraw-Hill Companies, Inc., 2000
The Production Budget
Budgeted sales
Add desired ending inventory Total needed Less beginning inventory Required production
April 20,000
10,000 30,000
4,000 26,000
May 50,000
6,000 56,000
June
30,000 units
July
25,000 units
August 15,000 units.
The selling price is $10 per unit.
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© The McGraw-Hill Companies, Inc., 2000
The Sales Budget
This budget is usually a twelve-month budget that rolls forward one month as the current month is completed.
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© The McGraw-Hill Companies, Inc., 2000
Budgeted sales (units)
Selling price per unit