Académique Documents
Professionnel Documents
Culture Documents
and Coordination
Chapter 10
Capacity-Related and
Flexible Resources
organizations goals
Provide an opportunity for the organizations
senior planners to correct misperceptions about the
organizations goals
fixed costs
Resources that, in the intermediate and long run,
enhance the potential of the organizations strategy
Long-term capacity resources that create fixed
costs
Behavioral Considerations
in Budgeting
Budget Components
Operating Budgets
Operating Budgets
Operating Budgets
Financial Budgets
Demand Forecast
(Sales Plan)
Handling Infeasible
Production Plans
or
Reduce the planned level of production
Interpreting the
Production Plan
receivables
Cash outflows
Financing Operations
Temporary or cyclical
Permanent
What-If Analysis
Variance Analysis
Variance Analysis
a competitor
Variance Analysis
budgeted quantity
Actual amount = actual price per unit * actual
quantity
Variance Analysis
First-Level Variances
actual output
Arise entirely because the planned volume of
activity was not realized
SR = standard rate
Support Activity
Cost Variances
Support Activity
Cost Variances
Sales Variances
Sales Variances
acquisition
Service Sales activities and staffing requirements
NFP Raising revenues and controlling expenditures
2012 Pearson Prentice Hall. All rights reserved.
Periodic Budgeting
Continuous Budgeting
Controlling Discretionary
Expenditures
Incremental Budgeting
or
All items may experience an across-the-board
increase of, for example, 5% and the remaining 5%
increase may be allocated based on merit
2012 Pearson Prentice Hall. All rights reserved.
Zero-Based Budgeting
Zero-Based Budgeting
Project Funding