Budgeting and Decision Making
Publisher: Bookboon.com
Published: 2013
ISBN-13: 9788776814922
Table of contents: title: Part.1 Budgeting: Planning for Success; title: 1. Importance of Budgets; title: 1.1 Forms and Functions; title: 1.2 Avoiding Business Chaos; title: 1.3 An Electrifying Case in Budgeting; title: 1.4 Recapping Benefits of Budgeting; title: 2. Budget Processes and Human Behavior; title: 2.1 Budget Construction; title: 2.2 Mandated Budgets; title: 2.3 Participative Budgets; title: 2.4 Blended Approach; title: 2.5 Organizational Structure Considerations; title: 2.6 Flattening the Organization Chart; title: 2.7 Budget Estimation; title: 2.8 Slack and Padding; title: 2.9 Zero-Based Budgeting; title: 2.10 The Impossible Budget and Employee Capitulation; title: 2.11 Ethical Challenges in Budgeting; title: 3. Components of the Budget; title: 3.1 Sales Budget; title: 3.2 Production Budget; title: 3.3 Direct Material Purchases Budget; title: 3.4 Direct Labor Budget; title: 3.5 Factory Overhead Budget; title: 3.6 Selling and Administrative Expense Budget; title: 3.7 Cash Budget; title: 3.8 Budgeted Income Statement and Balance Sheet; title: 3.9 External Use Documents; title: 3.10 Performance Appraisal; title: 4. Budget Periods and Adjustments; title: 4.1 Continuous Budgets; title: 4.2 Flexible Budgets; title: 4.3 Encumbrances; title: Part. 2 Tools for Enterprise Performance Evaluation; title: 5. Responsibility Accounting and Management by Exception; title: 5.1 Centralized Versus Decentralized Decision-Making; title: 5.2 Responsibility Centers; title: 5.3 Cost Center; title: 5.4 Profit Center; title: 5.5 Investment Center; title: 5.6 Affixing Responsibility; title: 5.7 Responsibility Center Reports; title: 5.8 The Power of a Data Base System; title: 5.9 Traceable Versus Common Fixed Costs; title: 5.10 Management by Expansion; title: 6. Flexible Budgets; title: 6.1 Flexible Budget for Performance Evaluations; title: 6.2 Flexible Budgets for Planning; title: 6.3 Flexible Budgets and Efficiency of Operation; title: 7. Standard Costs; title: 7.1 Setting Standards; title: 7.2 Philosophy of Standards; title: 7.3 The Downside of the Standards; title: 8. Variance Analysis; title: 8.1 Variances Relating to Direct Materials; title: 8.2 An Illustration of Direct Material Variance Calculations; title: 8.3 Journal Entries for Direct Material Variances; title: 8.4 When Purchases Differ From Usage; title: 8.5 Variances Relating to Direct Labor; title: 8.6 An Illustration of Direct Labor Variance Calculations; title: 8.7 Journal Entries for Direct Labor Variances; title: 8.8 Factory Overhead Variances; title: 8.9 Variable Versus Fixed Overhead; title: 8.10 Variances Relating to Variable Factory Overhead; title: 8.11 Exploring Variable Overhead Variances; title: 8.12 An Illustration of Variable Overhead Variances; title: 8.13 Journal Entry for Variable Overhead Variances; title: 8.14 Careful Interpretation of Variable Overhead Variances; title: 8.15 Variances Relating to Fixed Factory Overhead; title: 8.16 An Illustration of Fixed Overhead Variances; title: 8.17 Journal Entry for Fixed Overhead Variances; title: 8.18 Recapping Standards and Variances; title: 8.19 Examining Variances; title: 9. Balanced Scorecard Approach to Performance Evaluation; title: 9.1 The Balance Scorecard in Operation; title: Part.3 Reporting Techniques in Support of Managerial Decision Making; title: 10. Variable Versus Absorption Costing; title: 10.1 Absorption Costing; title: 10.2 Variable Costing; title: 10.3 Variable Costing in Action; title: 10.4 A Double-Edge Sword; title: 10.5 Avoiding a Downward Spiral; title: 10.6 Confused?; title: 10.7 An In-Depth Comparison of Variable Costing and Absorption Costing Income Statements; title: 10.8 The Impact of Inventory Fluctuations; title: 11. Segment Reporting; title: 11.1 Internal Reporting of Segment Data; title: 11.2 The Problem of Segment Income Measurement; title: 11.3 Contribution Income Statement Format; title: 11.4 External Reporting of Segment Data; title: 12. Measures of Residual Income; title: 12.1 Keeping Residual Income in Perspective; title: 13. Concepts in Allocating Service Department Costs; title: 13.1 The Direct Method of Allocating Service Department Cost; title: 13.2 The Step Method of Allocating Service Department Cost; title: 13.3 Multiple Steps and Simultaneous Allocations; title: 14. Leveraging the Power of Modern Information Systems; title: 14.1 Line Item Versus Object of Expenditure; title: 14.2 Business Dashboard; title: Part 4. Analytics for Managerial Decision Making; title: 15. Cost Characteristics and Decision-Making Ramifi cations; title: 15.1 Sunk Costs Versus Relevant Costs; title: 15.2 A Basic Illustration of Relevant Cost/Benefi t Analysis; title: 15.3 Complicating Factors; title: 16. Business Decision Logic; title: 16.1 Outsourcing; title: 16.2 Outsourcing Illustration; title: 16.3 Capacity Considerations in Outsourcing; title: 16.4 Illustration of Capacity Considerations; title: 16.5 Qualitative Issues in Outsourcing; title: 16.6 Special Orders; title: 16.7 Capacity Constraints and the Impact on Special Order Pricing; title: 16.8 Discontinuing a Product, Department, or Project; title: 16.9 The 80/20 Concept; title: 17. Capital Expenditure Decisions; title: 17.1 Management Stewardship; title: 17.2 Logic and Justification of Capital Decisions; title: 18. Compound Interest and Present Value; title: 18.1 Compound Interest; title: 18.2 Future Value of Annuities; title: 18.3 Future Value of an Annuity Due; title: 18.4 Future Value of an Ordinary Annuity; title: 18.5 Present Value; title: 18.6 Present Value of an Annuity Due; title: 18.7 Present Value of an Ordinary Annuity; title: 18.8 Electronic Spreadsheet Functions; title: 18.9 Challenge Your Thinking; title: 19. Evaluation of Long-Term Projects; title: 19.1 Net Present Value; title: 19.2 Impact of Changes in Interest Rates; title: 19.3 Emphasis on After Tax Cash Flows; title: 19.4 Accounting Rate of Return; title: 19.5 Internal Rate of Return; title: 19.6 Payback Method; title: 19.7 Conclusion; title: 20. Appendix