文档介绍：Work of Management
Planning
Controlling
Directing and Motivating
Remember!
Planning and Control
Planning -- involves developing objectives and preparing various budgets to achieve these objectives.
Control -- involves the steps taken by management that attempt to ensure the objectives are attained.
It uncovers potential bottlenecks before they occur.
It coordinates the activities of the anization by integrating the plans and objectives of the various parts.
It ensures that accounting ply with generally accepted accounting principles.
It provides benchmarks for evaluating subsequent performance.
Which of the following is not a benefit of budgeting?
Advantages of Budgeting
Advantages
Communicating
plans
Think about and
plan for the future
Means of allocating
resources
Uncover potential
bottlenecks
Coordinate
activities
Define goal
and objectives
Responsibility Accounting
Managers should be held responsible for those items — and only those items — that the manager can actually control to a significant extent.
Fairmont Inc. uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs. For example, if the sales manager accepts a rush order that will result in higher than normal manufacturing costs, these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager. This type of accounting system is known as:
A) responsibility accounting.
B) contribution accounting.
C) absorption accounting.
D) operational budgeting.
Choosing the Budget Period
Operating Budget
1999
2000
2001
2002
The annual operating budget
may be divided into quarterly
or monthly budgets.
Choosing the Budget Period
1999
2000
2001
2002
Continuous or
Perpetual Budget
This budget is usually a twelve-month
budget that rolls forward one month
as the current month pleted.
Participative Budget System
Flow of Budget