05-06 Akmen Planning&Budgeting 14-15

Plan
ning
& Co
Budg ntrolli
ng :
eting
Planning and Control Framework

Setting Organizational
Organizational
Setting
Objectives
Objectives
Identifying Opportunities
Opportunities
Identifying
and/or Problems
Problems
and/or
Selecting Course
Course of
of
Selecting
Action and
and Allocating
Allocating
Action
Resources
Resources
Evaluating Accomplishments
Accomplishments
Evaluating
of Organizational
Organizational
of
Objectives
Objectives
Purposes of Budgeting
Systems
Budget
a detailed plan,
expressed in
quantitative terms,
that specifies how
resources will be
acquired and used
during a specified
period of time.
Planning
Facilitating
Communication and
Coordination
Allocating Resources
Controlling Profit and
Operations
Evaluating Performance
and Providing Incentives
Advantages of Budgets
Compels managers
to think ahead
Aids managers in coordinating

their efforts
Providing information of resource for
the decision making (corectional decision)
Provides definite expectations that are the
best framework to evaluate performance
Types of Budgets
Strategic Plan
Long-Range Plan
Capital Budget
Master Budget
Continuous Budget
Strategic Plan
The most forward-looking budget is the
strategic plan, which sets the overall goals
and objectives of the organization.
Long-Range Plan
The strategic plan leads to long-range
planning, which produces forecasted
financial statements for five- to ten-year
periods.
Types of Budgets
Long Range Budgets
Continuous or
Rolling Budget
1999
2000
This
This budget
budget is
is usually
usually aa twelve-month
twelve-month
budget
budget that
that rolls
rolls forward
forward one
one month
month
as
as the
the current
current month
month is
is completed.
completed.
Capital
Capital budgets
budgets with
with acquisitions
acquisitions
that
that normally
normally cover
cover several
several years.
years.
2001
2002
Capital Budget
Long-range plans
are coordinated with capital budgets,
which detail the planned expenditures
for facilities, equipment, new products,
and other long-term investments.
Master Budget (anggaran induk)
Rencana keuangan
yang komprehensif
utk keseluruhan
organisasi yang
terdiri atas berbagai
anggaran
individual.
Sales
Production
Distribution
Finance
Main Components of Master Budget.
Operating Budget
Financial Budget
Preparation of a Master Budget for a Retail Organization

Sales Budget
Purchases Budget
Operating
Budgets
Cost of Goods
Sold Budget
Selling and
Administrative
Expense Budget
Budgeted
Income Statement
Financial
Budgets
Cash Budget
Capital
Expenditures Budget
Budgeted
Balance Sheet
Preparation of a Master Budget for a Service

Organization
Service Revenue
Operating
Budgets
Labor Budget
Services
Overhead
Budget
Selling and
Administrative
Expense Budget
Budgeted
Income Statement
Financial
Budgets
Cash Budget
Capital
Expenditures Budget
Budgeted
Balance
Sheet
Components of Master Budget

Inventory
Budget
____ ____
____ ____
____ ____
____ ____
____ ____
Sales
Budget
____ ____
____ ____
____ ____
____ ____
____ ____
Purchases
Budget
____ ____
____ ____
____ ____
____ ____
____ ____
Cost of
Goods Sold
Budget
____ ____
____ ____
____ ____
____ ____
Operating Budget
Operating
Expenses
Budget
____ ____
____ ____
____ ____
____ ____
Budgeted
Income
Statement
____ ____
____ ____
____ ____
____ ____
describe of activities to yield

earnings (sale, produce, finished
goods), so that end result from
operating budget
loss/profit proforma
Components of Master Budget

Cash
Budget
Capital
Budget
_____ _____
_____ _____
_____ _____
_____ _____
_____ _____
_____
_____
_____
_____
_____
_____
_____
_____
_____
_____
Budgeted
Balance
Sheet
_____ _____
_____ _____
_____ _____
_____ _____
_____ _____
itemizing cash
flows (in cash
budget) and also
the financial
position in general
posed
balance sheet
proforma
Financial
Budget
Activity-Based Costing versus Activity-Based

Budgeting
Resources
Resources
Resources
Resources
Activity-Based
Activity-Based
Costing
Costing (ABC)
(ABC)
Activities
Activities
Cost
Cost objects:
objects:
products
products and
and services
services
produced,
produced, and
and
customers
customers served.
served.
Activities
Activities
Activity-Based
Activity-Based
Budgeting
Budgeting (ABB)
(ABB)
Forecast
Forecast of
of products
products
and
and services
services to
to be
be
produced
produced and
and
customers
customers served.
served.
Budgeting and the Management Cycle

Relate the organizations
long-term
goals to its short-term
activities
Distribute resources and
workloads
Communicate responsibilities
Select performance
measures
Set goals for bonuses and
rewards
Calculate variances
Evaluate performance
Determine timeliness
Create solutions for
continuous
improvement
Communicate budget
information
Provide continuous
feedback
Communicate
expectations
Challenge & motivate
others
Coordinate activities
Recognize problems
Lets produce the Master Budget

for Breakers, Inc.
Sales
Materials
Covering all
phases of
a companys
operations.
Production
Master
Budget
Detail
Budget
Detail
Budget
Detail
Budget
Sales Budget
Breakers, Inc. is preparing budgets for
the quarter ending June 30.
Budgeted sales for the next five
months are:
April
20,000 units
May
50,000 units
June
30,000 units
July
25,000 units
August 15,000 units.
The selling price is $10 per unit.
Sales Budget
April
Budgeted
sales (units)
20,000
Selling price
per unit
$
10
Total
Revenue
$200,000
May
June
50,000
30,000
10
$500,000
10
$300,000
Quarter
100,000
$
10
$1,000,000
Production
Budget
Production Budget
Sales
Budget
m
o
C
pl
ed
t
e
Production
Budget
Production must be adequate to meet budgeted

sales and provide for sufficient ending inventory.
Production Budget
The
The management
management of
of Breakers,
Breakers, Inc.
Inc.
wants
wants ending
ending inventory
inventory to
to be
be equal
equal
to
to 20%
20% of
of the
the following
following months
months
budgeted
budgeted sales
sales in
in units.
units.
On
On March
March 31
31stst,, 4,000
4,000 units
units were
were on
on
hand.
hand.
budget.
budget.
Production
Budget
Lets
Lets prepare
prepare the
the production
production
Production Budget
Sales in units
Add: desired
end. inventory
Total needed
Less: beg.
inventory
Units to be
started
April
20,000
From sales
budget
May
June
Quarter
Production Budget
Sales in units
Add: desired
end. inventory
Total needed
Less: beg.
inventory
Units to be
started
April
20,000
10,000
30,000
May
June
May sales
Desired percent
Desired inventory
Quarter
50,000 units
20%
10,000 units
Production Budget
Sales in units
Add: desired
end. inventory
Total needed
Less: beg.
inventory
Units to be
started
April
20,000
May
June
10,000
30,000
4,000
26,000
March 31
ending inventory
Quarter
Production Budget
Sales in units
Add: desired
end. inventory
Total needed
Less: beg.
inventory
Units to be
started
April
20,000
May
50,000
10,000
30,000
6,000
56,000
4,000
10,000
26,000
46,000
June
Quarter
Production Budget
Sales in units
Add: desired
end. inventory
Total needed
Less: beg.
inventory
Units to be
started
April
20,000
May
50,000
June
30,000
Quarter
100,000
10,000
30,000
6,000
56,000
5,000
35,000
5,000
105,000
4,000
10,000
6,000
4,000
26,000
46,000
29,000
101,000
Direct-Material Budget
At
At Breakers,
Breakers, five
five pounds
pounds of
of material
material
are
are required
required per
per unit
unit of
of product.
product.
Management
Management wants
wants materials
materials on
on hand
hand
at
at the
the end
end of
of each
each month
month equal
equal to
to 10%
10%
of
of the
the following
following months
months production.
production.
On
On March
March 31,
31, 13,000
13,000 pounds
pounds of
of
material
material are
are on
on hand.
hand. Material
Material cost
cost
$0.40
$0.40 per
per pound.
pound.
Lets
Lets prepare
prepare the
the direct
direct materials
materials
Production in units
Materials per unit
Production needs
April
26,000
Add: desired
ending inventory
Total needed
Less: beginning
inventory
Materials to be
purchased
From our
production
budget
May
46,000
June
29,000
Quarter
101,000
Production in units
Materials per unit
Production needs
Add: desired
ending inventory
Total needed
Less: beginning
inventory
Materials to be
purchased
April
26,000
5
130,000
23,000
153,000
10% of the following

months production
May
46,000
5
230,000
June
Quarter
Production in units
Materials per unit
Production needs
Add: desired
ending inventory
Total needed
Less: beginning
inventory
Materials to be
purchased
March 31
inventory
April
26,000
5
130,000
23,000
153,000
13,000
140,000
May
46,000
5
230,000
June
29,000
5
145,000
Quarter
101,000
5
505,000
Production in units
Materials per unit
Production needs
Add: desired
ending inventory
Total needed
Less: beginning
inventory
Materials to be
purchased
April
26,000
5
130,000
May
46,000
5
230,000
June
29,000
5
145,000
Quarter
101,000
5
505,000
23,000
153,000
14,500
244,500
11,500
156,500
11,500
516,500
13,000
23,000
14,500
13,000
140,000
221,500
142,000
503,500
July Production
April 25,000 May

Sales in units
Production
in units
Add: desired
ending
inventory26,000 3,000 46,000
Total units
needed
Materials
per unit
528,000
5
Less: beginning
Productioninventory
needs
130,000 5,000 230,000
Production in units
23,000
June
29,000
5
145,000
Add: desired
ending inventory
23,000
14,500
11,500
Total needed
153,000
244,500
156,500
Less: beginning
inventory
23,000
14,500
June13,000
Ending Inventory
Materials
be
July to
production
in units
23,000
purchased
140,000
221,500
142,000
Materials per unit
5
Total units needed
115,000
Inventory percentage
10%
June desired ending inventory
11,500
Quarter
101,000
5
505,000
11,500
516,500
13,000
503,500
Direct-Labor Budget
At Breakers, each unit of product requires 0.1
hours of direct labor.

The Company has a no layoff policy so all
employees will be paid for 40 hours of work each
week.
In exchange for the no layoff policy, workers
agreed to a wage rate of $8 per hour regardless of
the hours worked (No overtime pay).
For the next three months, the direct labor
workforce will be paid for a minimum of 3,000
hours per month.
Lets prepare the direct labor budget.
Direct-Labor Budget
Production in units
Direct labor hours
Labor hours required
Guaranteed labor
hours
Labor hours paid
Wage rate
Total direct labot cost
April
26,000
May
46,000
From our
production
budget
June
29,000
Quarter
101,000
Direct-Labor Budget
Production in units
Direct labor hours
Guaranteed labor
hours
Labor hours paid
Wage rate
April
26,000
0.10
2,600
May
46,000
0.10
4,600
June
29,000
0.10
2,900
Quarter
101,000
0.10
10,100
Direct-Labor Budget
Production in units
Direct labor hours
Guaranteed labor
hours
Labor hours paid
Wage rate
April
26,000
0.10
2,600
May
46,000
0.10
4,600
June
29,000
0.10
2,900
Quarter
101,000
0.10
10,100
3,000
3,000
3,000
4,600
3,000
3,000
10,600
This is the greater of

labor hours required or
labor hours guaranteed.
Direct-Labor Budget
April
26,000
0.10
2,600
Production in units
Direct labor hours
Guaranteed labor
hours
3,000
Labor hours paid
3,000
Wage rate
$
8
Total direct labot cost $ 24,000
May
46,000
0.10
4,600
June
29,000
0.10
2,900
Quarter
101,000
0.10
10,100
3,000
4,600
$
8
$ 36,800
3,000
3,000
$
8
$ 24,000
10,600
$
8
$ 84,800
Total DLH Q2
Overhead Budget
Here is Breakers Overhead Budget for the
quarter.
April
Indirect labor
Indirect material
Utilities
Rent
Insurance
Maintenance
17,500
7,000
4,200
13,300
5,800
8,200
56,000
May
June
26,500
12,600
8,400
13,300
5,800
9,400
76,000
17,900
8,600
5,200
13,300
5,800
8,200
59,000
Total MOH Q2
Quarter
61,900
28,200
17,800
39,900
17,400
25,800
$ 191,000
Selling and Administrative

Expense Budget
At
At Breakers,
Breakers, variable
variable selling
selling and
and
administrative
administrative expenses
expenses are
are $0.50
$0.50
per
per unit
unit sold.
sold.
Fixed
Fixed selling
selling and
and administrative
administrative
expenses
expenses are
are $70,000
$70,000 per
per month.
month.
The
The $70,000
$70,000 fixed
fixed expenses
expenses include
include
$10,000
$10,000 in
in depreciation
depreciation expense
expense that
that
does
does not
not require
require aa cash
cash outflows
outflows for
for
the
the month.
month.

Expense Budget
Sales in units
Variable S&A rate
Variable expense
Fixed S&A
expense
Total expense
Less: noncash
expenses
Cash
disbursements
April
20,000
May
50,000
From our
Sales budget
June
30,000
Quarter
100,000

Expense Budget
Sales in units
Variable S&A rate
Variable expense
Fixed S&A
expense
Total expense
Less: noncash
expenses
Cash
disbursements
April
20,000
$ 0.50
$ 10,000
May
50,000
$ 0.50
$ 25,000
June
30,000
$ 0.50
$ 15,000
Quarter
100,000
$
0.50
$ 50,000
70,000
80,000
70,000
95,000
70,000
85,000
210,000
260,000

Expense Budget
Sales in units
Variable S&A rate
Variable expense
Fixed S&A
expense
Total expense
Less: noncash
expenses
Cash
disbursements
April
20,000
$ 0.50
$ 10,000
May
50,000
$ 0.50
$ 25,000
June
30,000
$ 0.50
$ 15,000
Quarter
100,000
$
0.50
$ 50,000
70,000
80,000
70,000
95,000
70,000
85,000
210,000
260,000
10,000
10,000
10,000
30,000
$ 70,000
$ 85,000
$ 75,000
$ 230,000
Cash Receipts Budget

At
At Breakers,
Breakers, all
all sales
sales are
are on
on account.
account.
The
The companys
companys collection
collection pattern
pattern is:
is:
70%
70% collected
collected in
in the
the month
month of
of sale,
sale,
25%
25% collected
collected in
in the
the month
month following
following
sale,
sale,
5%
5% is
is uncollected.
uncollected.
The
The March
March 31
31 accounts
accounts receivable
receivable
balance
balance of
of $30,000
$30,000 will
will be
be collected
collected
in
in full.
full.

Accounts rec. - 3/31
April sales
70% x $200,000
25% x $200,000
Total cash collections
April
$ 30,000
May
140,000
$ 50,000
$ 170,000
June
Quarter
$ 30,000
140,000
50,000

Accounts rec. - 3/31
April sales
70% x $200,000
25% x $200,000
May sales
70% x $500,000
25% x $500,000
June sales
70% x $300,000
Total cash collections
April
$ 30,000
May
June
140,000
140,000
50,000
$ 50,000
350,000
$ 170,000
$ 400,000
Quarter
$ 30,000
$ 125,000
350,000
125,000
210,000
$ 335,000
210,000
$ 905,000
Back to Cash Dishbursment.
Cash Disbursement Budget

Breakers
Breakers pays
pays $0.40
$0.40 per
per pound
pound for
for its
its
materials.
materials.
One-half
One-half of
of aa months
months purchases
purchases are
are
paid
paid for
for in
in the
the month
month of
of purchase;
purchase; the
the
other
other half
half is
is paid
paid in
in the
the following
following
month.
month.
No
No discounts
discounts are
are available.
available.
The
The March
March 31
31 accounts
accounts payable
payable
balance
balance is
is $12,000.
$12,000.

Accounts pay. 3/31
April purchases
50% x $56,000
50% x $56,000
Total cash payments

for materials
April
$ 12,000
May
28,000
$ 28,000
$ 40,000
140,000 lbs. $.40/lb. = $56,000
June
Quarter
$ 12,000
28,000
28,000

Accounts pay. 3/31
April purchases
50% x $56,000
50% x $56,000
May purchases
50% x $88,600
50% x $88,600
June purchases
50% x $56,800
Total cash payments
for materials
April
$ 12,000
May
June
28,000
28,000
28,000
$ 28,000
44,300
$ 40,000
$ 72,300
Quarter
$ 12,000
$ 44,300
44,300
44,300
28,400
28,400
$ 72,700
$ 185,000

Continued
Breakers:
Breakers:
Maintains
Maintains aa 12%
12% open
open line
line of
of credit
credit for
for
$75,000.
$75,000.
Maintains
Maintains aa minimum
minimum cash
cash balance
balance of
of
$30,000.
$30,000.
Borrows
Borrows and
and repays
repays loans
loans on
on the
the last
last day
day of
of
the
the month.
month.
Pays
Pays aa cash
cash dividend
dividend of
of $25,000
$25,000 in
in April.
April.
Purchases
Purchases $143,700
$143,700 of
of equipment
equipment in
in May
May
and
and $48,300
$48,300 in
in June
June paid
paid in
in cash.
cash.
Has an April 1 cash balance of $40,000.

Continued
April
May
June
Beginning cash balance $ 40,000
Add: cash collections
170,000
Total cash available
210,000
Less: disbursements
Materials
Direct labor
Mfg. overhead
From our Cash
Selling and admin.
Receipts Budget
Equipment purchase
Dividends
Total disbursements
Excess (deficiency) of
Cash available over
disbursements
Quarter

Continued
April
May
June
170,000
210,000
Less: disbursements
Materials
40,000
Direct labor
Mfg. overhead
Selling and admin.
Equipment purchase
Dividends
Total disbursements
From our Cash
Disbursements
Cash available over
Budget
disbursements
Quarter

Continued
April
170,000
210,000
Less: disbursements
Materials
40,000
Direct labor
24,000
Mfg. overhead
Selling and admin.
Equipment purchase
Dividends
Total disbursements
Cash available over
disbursements
May
June
Quarter
From our Direct

Labor Budget

Continued
April
170,000
210,000
Less: disbursements
Materials
40,000
Direct labor
24,000
Mfg. overhead
56,000
Selling and admin.
Equipment purchase
Dividends
Total disbursements
Cash available over
disbursements
May
June
Quarter
From our
Overhead Budget

Continued
April
170,000
210,000
Less: disbursements
Materials
40,000
Direct labor
24,000
Mfg. overhead
56,000
Selling and admin.
70,000
Equipment purchase
Dividends
Total disbursements
Cash available over
disbursements
May
June
Quarter
From our
Expense Budget

Continued
April
170,000
210,000
Less: disbursements
Materials
40,000
Direct labor
24,000
Mfg. overhead
56,000
Selling and admin.
70,000
Equipment purchase
Dividends
25,000
Total disbursements
215,000
Cash available over
disbursements
$ (5,000)
May
June
Quarter
To maintain a cash
balance of $30,000,
Breakers must borrow
$35,000 on its line of credit.

Financing and Repayment
April
Cash available over
disbursements
Financing:
Borrowing
Repayments
Interest
Total financing
Ending cash balance
May
June
Quarter
$ (5,000)
35,000
35,000
$ 30,000
Ending cash balance for April

is the beginning May balance.

Continued
April
170,000
210,000
Less: disbursements
Materials
40,000
Direct labor
24,000
Mfg. overhead
56,000
Selling and admin.
70,000
Equipment purchase
Dividends
25,000
Total disbursements
215,000
Cash available over
disbursements
$ (5,000)
May
$ 30,000
400,000
430,000
72,300
36,800
76,000
85,000
143,700
413,800
$ 16,200
June
Quarter
Breakers must
borrow an
addition $13,800
to maintain a
cash balance
of $30,000.

Cash available over
disbursements
Financing:
Borrowing
Repayments
Interest
Total financing
Ending cash balance
April
May
$ (5,000)
$ 16,200
35,000
35,000
$ 30,000
13,800
13,800
$ 30,000
June
Quarter

Continued
April
May
Beginning
cash of
balance
$ 40,000
At the end
June,
Breakers$ 30,000
170,000
400,000
has enough cash210,000
to repay 430,000
the $48,800
loan plus interest
Less:
disbursements
at 12%. 40,000
Materials
72,300
Direct labor
24,000
36,800
Mfg. overhead
56,000
76,000
Selling and admin.
70,000
85,000
Equipment purchase
143,700
Dividends
25,000
Total disbursements
215,000
413,800
Cash available over
disbursements
$ (5,000)
$ 16,200
June
$ 30,000
335,000
365,000
72,700
24,000
59,000
75,000
48,300
279,000
$ 86,000
Quarter

Cash available over
disbursements
Financing:
Borrowing
Repayments
Interest
Total financing
Ending cash balance
Borrowing
$
35,000
13,800
April
May
June
$ (5,000)
$ 16,200
$ 86,000
35,000
35,000
$ 30,000
13,800
13,800
$ 30,000
(48,800)
(838)
(49,638)
$ 36,362
Annual
Rate
Interest
12% = $
4,200
12% =
1,656
Quarter
Months
Interest
Outstanding
Expense
2 mths
= $
700
1 mth.
=
138
$
838

Continued
April
170,000
210,000
Less: disbursements
Materials
40,000
Direct labor
24,000
Mfg. overhead
56,000
Selling and admin.
70,000
Equipment purchase
Dividends
25,000
Total disbursements
215,000
Cash available over
disbursements
$ (5,000)
May
$ 30,000
400,000
430,000
June
$ 30,000
335,000
365,000
Quarter
$ 40,000
905,000
945,000
72,300
36,800
76,000
85,000
143,700
413,800
72,700
24,000
59,000
75,000
48,300
279,000
185,000
84,800
191,000
230,000
192,000
25,000
907,800
$ 16,200
$ 86,000
$ 37,200

Cash available over
disbursements
Financing:
Borrowing
Repayments
Interest
Total financing
Ending cash balance
April
May
June
Quarter
$ (5,000)
$ 16,200
$ 86,000
$ 37,200
35,000
35,000
$ 30,000
13,800
13,800
$ 30,000
(48,800)
(838)
(49,638)
$ 36,362
48,800
(48,800)
(838)
(838)
$ 36,362
Budgeted Income
Statement
Cash
Budget
m
o
C
pl
ed
t
e
Budgeted
Income
Statement
After we complete the cash budget, we can prepare

the budgeted income statement for Breakers.
Budgeted Ending Inventory

Manufacturing overhead is applied on the basis of direct labor hours.
Production costs per unit
Direct materials
Direct labor
Manufacturing overhead
Quantity
Cost
5.00 lbs. $ 0.40
0.10 hrs. $ 8.00
0.10 hrs. $18.02
$
Budgeted finished goods inventory
Ending inventory in units
Unit product cost
Ending finished goods inventory
Total
2.00
0.80
1.80
4.60
5,000
$ 4.60
$23,000
Total overhead $191,000

= $18.02 per hr.*
Total labor hours 10,600 hrs.
*rounded
Budgeted Income
Statement Breakers, Inc.
Budgeted Income Statement
For the Three Months Ended June 30
Revenue (100,000 $10)
Cost of goods sold (100,000 $4.60)
Gross margin
Operating expenses:
Selling and admin. Expenses
Interest expense
Total operating expenses
Net income
$ 1,000,000
460,000
540,000
$ 260,000
838
$
260,838
279,162
Budgeted Balance Sheet

Breakers
Breakers reports
reports the
the following
following account
account
balances
balances on
on June
June 30
30 prior
prior to
to
preparing
preparing its
its budgeted
budgeted financial
financial
statements:
statements:
Land
Land -- $50,000
$50,000
Building
Building (net)
(net) -- $148,000
$148,000
Common
Common stock
stock -- $200,000
$200,000
Retained
Retained earnings
earnings -- $46,400
$46,400
Breakers, Inc.
June 30
25% of June
sales of
$300,000
11,500 lbs. at
$.40 per lb.
5,000 units at
$4.60 per unit.
Current assets
Cash
Accounts receivable
Raw materials inventory
Finished goods inventory
Total current assets
Property and equipment
Land
Building
Equipment
Total property and equipment
Total assets
Accounts payable
Common stock
Retained earnings
Total liabilities and equities
36,362
75,000
4,600
23,000
138,962
50,000
148,000
192,000
390,000
$ 528,962
$
28,400
200,000
300,562
$ 528,962
Breakers, Inc.
June 30
50% of June
purchases
of $56,800
Beginning balance
Add: net income
Deduct: dividends
Ending balance
Current assets
Cash
Accounts receivable
Raw materials inventory
Finished goods inventory
Total current assets
Property and equipment
Land
Building
$ Equipment
46,400
Total property and equipment
279,162
(25,000)
Total
assets
$300,562
Accounts payable
Common stock
Retained earnings
Total liabilities and equities
36,362
75,000
4,600
23,000
138,962
50,000
148,000
192,000
390,000
$ 528,962
$
28,400
200,000
300,562
$ 528,962
Budget Administration
The Budget Committee is a standing
committee responsible for . . .
overall
overall policy
policy matters
matters relating
relating to
to the
the budget.
budget.
coordinating
coordinating the
the preparation
preparation of
of the
the budget.
budget.
E-Budgeting (Penganggaran Elektronik)
Employees throughout an organization

can submit and retrieve budget
information electronically. This tends to
streamline the entire budgeting process.
Firewalls and Information

Security
Budget information is extremely sensitive and
confidential. A firewall is a computer or router
placed between a companys internal
network and the internet to control all
information between the outside world and
the companys local network.
Sistem Penganggaran Untuk

Operasi-Operasi Bisnis
Penganggaran Inkremental (Incremental
Budgeting)
Penganggaran Basis Nol (Zero-Based Budgeting)
Penganggaran Statik (Static Budgeting)
Penganggaran Fleksibel (Flexible Budgeting)
Penganggaran Inkremental
(Incremental/Baseline Budgeting)
Adalah metode penganggaran yang
hanya mempertimbangkan perubahan
sumber-sumber daya dari anggaran
tahun sebelumnya.
Anggaran tahun sebelumnya dijadikan
sebagai dasar penyusunan anggaran.
Banyak digunakan oleh
pemerintahan dan nirlaba.
organisasi
Zero-Base Budgeting
(Anggaran Basis Nol)
Di dalam penyusunan anggaran, semua jajaran
manajemen bertolak dari nol dan menaksir
kebutuhan-kebutuhan sumber daya yang
diperlukan untuk mendanai aktivitas-aktivitas
tahun anggaran berikutnya.
Anggaran tahun sebelumnya tidak diterima apa
adanya.
Penganggaran Statik (Static Budgeting)

Merupakan anggaran yang dipakai oleh
banyak perusahaan jasa dan pada
banyak fungsi pendukung seperti bagian
pembelian, akuntansi, hukum.
Anggaran statik disusun untuk suatu
tingkat aktivitas tertentu.
Penganggaran Fleksibel (Flexible Budgeting)
Mengaitkan volume aktivitas

jumlah uang yang dianggarkan.
dengan
Merupakan serangkaian anggaran untuk

berbagai macam tingkat aktivitas.
Anggaran fleksibel dapat membantu
manajemen menghadapi ketidakpastian
dengan memungkinkan mereka untuk
melihat taksiran hasil-hasil dan kisaran
aktivitas tertentu.
Formulasi Anggaran Fleksibel

Anggaran fleksibel adalah anggaran yang dapat dibuat
untuk aktivitas dengan berbagai tingkatan.
Untuk pelaporan kinerja, adalah penting untuk
membandingkan biaya aktual untuk tingkat aktivitas
aktual dengan biaya yang dianggarkan untuk tingkat
aktivitas aktual.
Anggaran fleksibel memberikan cara untuk menghitung
biaya yang dianggarkan untuk tingkat aktivitas aktual.
Anggaran fleksibel mensyaratkan pengetahuan akan
komponen biaya variabel dan biaya tetap, yang
didasarkan pada rumus sederhana : Y = F + VX.
International Aspects of
Budgeting
Firms
Firms with
with international
international operations
operations face
face
special
special problems
problems when
when preparing
preparing aa budget.
budget.
Fluctuations
Fluctuations in
in foreign
foreign currency
currency exchange
exchange
rates.
rates.
High
High inflation
inflation rates
rates in
in some
some foreign
foreign countries.
countries.
Differences
Differences in
in local
local economic
economic conditions.
conditions.
Budgeting Product Life-Cycle

Costs
Product
Product planning
planning
and
and concept
concept
Design.
Design.
Distribution
Distribution
and
and customer
customer
service.
service.
Preliminary
Preliminary
design.
design.
Production.
Production.
Detailed
Detailed design
design
and
and testing.
testing.
Participative Budgeting
Top M anagem ent
M id d le
M anagem ent
S u p e rv is o r
S u p e rv is o r
M id d le
M anagem ent
S u p e rv is o r
S u p e rv is o r
Flow of Budget Data

Penganggaran partisipatif adalah suatu sistem anggaran yang
memberikan kesempatan bagi para manajer bawahan utk ikut
menyusun anggaran. Anggaran parisipatif memberikan rasa
tanggung jawab kpd para manajer yang lebih rendah dan
mendorong timbulnya kreatifitas dan meningkatkan tingginya
tingkat keselarasan tujuan.
Potensi masalah yang muncul

dalam penyusunan anggaran
Penetapan Standar yang terlalu tinggi
atau terlalu rendah personal goal.
Memasukkan slack dalam anggaran
(padding the budget) tindakan
mengamankan anggaran.
Partisipasi semu/formalisasi partisipasi
anggaran pseudoparticipation.
Behavioral Impact of
Budgets
Budgetary Slack : Padding the Budget
People often perceive that their
performance will look better in their
superiors eyes if they can beat the
budget.
Hmm....chaf dhhh!!
Kalau ada yang mo

tanya.yo ndhang
tanyao!
Hmmmhhh...!!
Cheese
Its delicious
ice cream
So Go'od
Mart
Ice Cream
Yeahits good.
How they
manage this
mart?
!
t..
I
e
Do
os
ph
t
m
s
a
Ju St
Operating Budget
for a Merchandising Company
So Good Cheese Company is a wholesale distributor of blue cheese

and ice cream. The following information is available for April 2014.
Estimated sales :
Blue cheese
Ice cream
160,000 hoops at $10 each

240,000 gallons at $5 each
Desired inventories :
Beginning
Ending
Blue cheese
10,000
12,000
Ice cream
4,000
5,000
Estimated costs :
Blue cheese
Ice cream
$8 per hoop
$2 per gallon
Financial information :
Beginning cash balance is $400,000.
Purchases of merchandise are paid 60% in current month and
40% in following month. Purchases totaled $1,800,000 in
March.
Employee wages, salaries, and commisions are paid for in
current month. Employee expenses for April totaled $156,000.
Overhead expenses are paid in the next month. The account
payable for these expenses from March is $80,000.
Sales on credit are collected 70% in current period and 29% in
the next period. March sales were $3,000,000. Bad debts
average one percent of sales.
Selling and administrative expenses are paid monthly and total
$540,000, including $40,000 of depreciation.
Please, prepare the following for April 2014 :
1.
2.
3.
4.
Sales budget in dollars

Purchases budget
Cash budget
Pro forma income statements
Lets do it...!
Handy Company manufactures and sells two industrial products in a single plant. The new manager
wants to have quarterly budgets and has prepared the following information for the first quarter of 2001.
Estimated sales :
Drills
Saws
60,000 at $100 each

40,000 at $125 each
Predicted inventories :
Drills, finished
Saws, finished
Metal, direct materials
Plastic, direct materials
Handles, direct materials
Beginning
20,000
8,000
32,000 lbs.
29,000 lbs.
6,000 each
Ending
25,000
10,000
36,000 lbs.
32,000 lbs.
7,000 each
Manufacturing requirements :
Direct Materials
Drills
Metal, 5 lbs. at $8 per lb.
Plastic, 3 lbs. at $5 per lb.
Handles, 1 each at $3
Saws
Metal, 4 lbs. at $8 per lb.
Plastic, 3 lbs. at $5 per lb.
Direct Labor
2 hours at $12 per hour
3 hours at $16 per hour
Variable manufacturing overhead is applied at the rate of $1.50 per direct labor hour for each product.
Fixed manufacturing overhead is $214,000 per quarter, including noncash expenditures of $156,000,
and is allocated on total units completed.
Financial information :
Beginning cash balance is $ l ,800,000.
Purchases of direct materials and labor costs are paid for in quarter acquired.
Overhead expenses are paid each quarter.
Sales are on credit and are collected 50 percent in current period and the remainder the next period.
Last quarter's sales were $8,400,000. There are no bad debts.
Selling and administrative expenses are paid quarterly and total $340,000, including $90,000 of
depreciation.
All unit costs for the first quarter of 2001 are the same as they were for the last quarter of 2000.
Required:
For the first quarter of 2001, prepare :
(a) Sales budget in dollars
(b) Production budget in units
(c) Purchases budget
(d) Manufacturing disbursements budget
(e) Cash budget
(f) Budgeted income statement using the functional format (Hirzt : First determine the
manufacturing costs per unit for drills and saws. These include direct materials, direct labor,
variable manufacturing overhead, and the average fixed manufacturing overhead per unit
completed.)
Anda Pasti Bisa..!!!

05-06 Akmen Planning&amp;Budgeting 14-15

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Plan

Planning and Control Framework

Aids managers in coordinating

Master Budget (anggaran induk)

Main Components of Master Budget.

Preparation of a Master Budget for a Retail Organization

Preparation of a Master Budget for a Service

Components of Master Budget

describe of activities to yield

Components of Master Budget

Activity-Based Costing versus Activity-Based

Budgeting and the Management Cycle

Lets produce the Master Budget

The selling price is $10 per unit.

Production must be adequate to meet budgeted

10% of the following

April 25,000 May

hours of direct labor.

This is the greater of

Selling and Administrative

Selling and Administrative

Selling and Administrative

Selling and Administrative

Cash Receipts Budget

Cash Receipts Budget

Total cash collections

Cash Receipts Budget

Back to Cash Dishbursment.

Cash Disbursement Budget

Cash Disbursement Budget

Total cash payments

140,000 lbs. $.40/lb. = $56,000

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

From our Direct

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

Ending cash balance for April

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

Cash Disbursement Budget

After we complete the cash budget, we can prepare

Budgeted Ending Inventory

Total overhead $191,000

Budgeted Balance Sheet

E-Budgeting (Penganggaran Elektronik)

Employees throughout an organization

Firewalls and Information

Sistem Penganggaran Untuk

Penganggaran Statik (Static Budgeting)

Penganggaran Fleksibel (Flexible Budgeting)

Mengaitkan volume aktivitas

Merupakan serangkaian anggaran untuk

Formulasi Anggaran Fleksibel

Budgeting Product Life-Cycle

Flow of Budget Data

05-06 Akmen Planning&Budgeting 14-15

05-06 Akmen Planning&Budgeting 14-15