Examination card №17

THE BUDGET IS A PLAN OF ACTION AND AN INSTRUMENT OF COORDINATION AND IMPLEMENTATION OF THE COMPANY’S OPERATION DESIGNED TO ACHIEVE GOALS QUANTIFYING THE REQUIRED RESOURCES

THE BUDGET’S MAIN FEATURES: GLOBAL, BROKEN DOWN BY RESPONSIBILITY CENTERS, COVERING INFRA ANNUAL PERIODS TRANSLATED IN MONETARY UNITS

THE ADVANTAGES OF BUDGETS: FORCE THE MANAGEMENT TO THINK ABOUT STRATEGY AND PLANS, PROVIDE A FRAME WORK FOR JUDGING PERFORMANCE, CONTRIBUTE TO COMPANY’S COORDINATION AND COMMUNICATION

But IN ORDER TO BE EFFECTIVE THEY NEED MANAGEMENT SUPPORT

TYPES OF BUDGET: CAPITAL BUDGETS, OPERATING BUDGETS ( BUDGETED INCOME STATEMENT, COST OF GOODS SOLD BUDGET, SELLING EXPENSES BUDGET, ADMINISTRATIVE EXPENSES BUDGET), FINANCIAL BUDGETS (BUDGETED BALANCE SHEET, CASH BUDGET, BUDGETED FLOW OF FUNDS)

THE BUDGETARY PROCESS

1)PLANNING THE PERFORMANCE OF THE ORGANIZATION AS A WHOLE AND AS ITS SUBUNITS. THE ENTIRE MANAGEMENT AGREES AS TO WHAT IS EXPECTED

2)PROVIDING A FRAME OF REFERENCE, A SET OF SPECIFIC EXPECTATIONS AGAINST WHICH ACTUAL RESULTS CAN BE COMPARED

3)INVESTIGATING VARIANCES FROM PLANS. CORRECTIVE ACTION FOLLOWS INVESTIGATION

4) PLANNING AGAIN, CONSIDERING FEEDBACK AND CHANGED CONDITIONS FEEDBACK

Task 1 …was put 5 000 thousand UAH, supposed to produce 10 000 units of production. Define the depreciation for a year during which 2 000 units of production are made.

Depreciation for 1 unit of production D = С / В, D = 5 000 000/ 10 000 = 500 UAH/UN.

Annual depreciation for a year during which 2 000 units of production are made D_год = 500 · 2 000 = 1 000 thous. UAH

Calculations shows that the proportional part of fixed assets’ cost goes to the depreciation in the producing of the fifth part of production

Task 2 Prepare the direct materials budget based on following data

	Quarter
					TOTAL
1.Units to be produc mater needs per unit	x4	x4	x4	x4	x4
2.Total needs (T.n.)
3.Desired ending inventory of materials =10% of next quarter in 2.T.n.				(From the data)
4.Total production needs=3+2
5.Less: beginning inventory (from 3.Des. end invent. of mater)
6. Material to be purchased=4-5
7. Purchase cost (from data)
8. Purchase cost=6x7	11600 thous	8040 thous	8560 thous	9350 thous	37550 thous

The schedule of expected cash disbursements

	1	2	3	4	TOTAL
1st qtr purchases	11600	11600			23200
2d qtr purchases		8040	8040		16080
3d qtr purchases			8560	8560	17120
4th qtr purchases				9350	9350
Total disbursements	11600	19640	16600	17910	65750

Дата добавления: 2015-11-14