Standard costing greatly facilitates the preparation of a materials budget. When standard cost records are not available, the details have to be adjusted to the period when manufacture takes place. Materials are controlled on the basis of price and usage after allowing for normal wastage. Technical experts decide on the best and most economical material to use for each purpose. While preparing the materials budget, the following factors must be taken into account:
The quantities of materials to be required for the production budget
The probable dates by which materials required must be available
Storage facilities available
Availability of credit facilities and other financial resources
Price trends in the market
The anticipated cost of the purchase to be made
Nature of materials i.e. seasonal or otherwise
Economic order quantity
Inventory policy The main advantage of materials budget is that it shall enable the purchase department to plan its programmes well in advance and make its purchases under the best conditions.
会计代写|中级管理会计代考INTERMEDIATE MANAGEMENT ACCOUNTING代写|Direct Labour Budget
Direct labour cost budget estimates the cost of labour required to achieve the budgeted output. To prepare this budget, first, direct labour time required (generally expressed in terms of labour hours) is ascertained, multiplied with the wage rates likely to apply during the budget period. Where different grades of labour exist, these should be specified separately in the budget. The factors to be considered while preparing labour budget are:
Output per labour (average)
Labour productivity
Rate of labour turnover of various groups
Wage payment plan
Incentives
Likely changes in wage structre
Effect learning curve etc.
会计代写|中级管理会计代考Intermediate Management Accounting代写|ACCT3011 Direct Materials Budget
现代博弈论始于约翰-冯-诺伊曼（John von Neumann）提出的两人零和博弈中的混合策略均衡的观点及其证明。冯-诺依曼的原始证明使用了关于连续映射到紧凑凸集的布劳威尔定点定理，这成为博弈论和数学经济学的标准方法。在他的论文之后，1944年，他与奥斯卡-莫根斯特恩（Oskar Morgenstern）共同撰写了《游戏和经济行为理论》一书，该书考虑了几个参与者的合作游戏。这本书的第二版提供了预期效用的公理理论，使数理统计学家和经济学家能够处理不确定性下的决策。
会计代写|中级管理会计代考Intermediate Management Accounting代写|ACCT5001 ESSENTIALS OF SUCCESSFUL BUDGETING
会计代写|中级管理会计代考INTERMEDIATE MANAGEMENT ACCOUNTING代写|NATURE AND SCOPE OF MANAGEMENT ACCOUNTING
A close study of successful budgetary programmes indicates that there are some common practices to be observed. Failure to appreciate and observe these essentials will negate to a large extent the value of a budgetary program. These essentials or pre-requisites for successful budgeting are listed below:
Support and involvement of top management: The budget should be sponsored by management and it should have the active and whole-hearted support of top management. In other words, management should believe in the efficacy of budget as a tool of effective management and not as primarily an accounting device. The company should take the budgeting process very seriously.
Built-up by responsibility centres: For successful budgeting, it is also necessary that it should be built-up by responsibility centres and should show the controllable costs in each responsibility centre.
Participation by responsible supervisors: The responsible supervisors should participate in the process of setting the budget figures and should agree that the budget goals are reasonable. If they are not consulted, their attitude towards the budget is likely to be one of indifference and resentment. In other words, budget targets should not be imposed by the management rather they should emanate from the organisation itself.
Clear-cut organisational structure: A successful budgetary program pre-supposes a clear allocation of authority, duties and responsibilities in the organisation. Everybody in the organisation should know who is responsible to whom.
Continuous budget education: If the budget is to be effective, all responsible supervisors must be actively interested in it. This requires that the responsible supervisors are aware of the entire budgeting process. The best way to assure this is a program of continuous budget education through manuals, meetings, etc. to discuss the preparation of budget and actual results achieved.
Timeliness: The time period covered by the budget should be related to the necessity for and the possibility of effective management action.
Reasonably attainable targets: The targets laid down in the budget should be reasonably attainable. Too high a target will be frustrating and too low a target will encourage complacency.
Management by exception (MBE): In comparing actual performance with budgeted perfor-mance, attention should be focused on significant exceptions – items that are significantly different than expected.
Thorough review of budget estimates: The review of budget estimates by successively higher levels of management should be thorough. Casual review is a signal that management is really not much interested in the budget process.
Proper communication: Final approval of the budget should be specific and this approval should be communicated to the organisation. An attempt to operate on the doctrine “silence gives consent” inevitably leads to misunderstanding.
Responsibility accounting: Since budget is based upon historical data and since control includes the measurement of plans and objectives, the accounting system must be built-up around the responsibility structure of the enterprise. Comparisons between budgeted and actual results are meaningless if revenues used in the budget and the accounting system are not in harmony.
Flexible: It is important that budgeting is flexible rather than static. Instead of basing budgets on a single fixed level of activity, they should be prepared for several levels of activity. Again, budget should be revised if market conditions change.
Integration with standard costing system: For better results, a system of budgetary control should be used in conjunction with a system of standard costing and variance analysis.
会计代写|中级管理会计代考INTERMEDIATE MANAGEMENT ACCOUNTING代写|ADVANTAGES (USES) OF BUDGETING
The only justification of budgeting is its service to management. Therefore, a budgetary program should result in definite and tangible benefits directly related to the basic functions of management i.e. planning, coordination and control. Now it may be examined how budgeting helps in the aforesaid areas. Budgeting and Planning: Planning is the key to good management. It involves the establishment of objectives (long term and short term) for each department and division of the organization and the organization required to achieve them. Although basic planning decisions are usually made prior to the beginning of the budget cycle, the process of formulation of the budget leads to a refinement of these plans and when it discloses imbalances or unsatisfactory overall results, it may lead to a change in plans. Budgeting and Coordination: Coordination is the process whereby each department or division of a form works towards common objectives with due regard for all other such divisions and unity of effort. For example, they may be very close coordination between sales and production departments. A properly designed and operated budgetary program will contribute greatly to coordination throughout the firm. Budgeting and Control: Control is the action necessary to assure that plans and objectives are being achieved. Budget can be used as a benchmark that allows managers to compare actual performance with estimated or desired performance “Management by Exception” principle helps to exercise control through the budgets. Under this principle, significant variations only are looked into and analysed. In fact, budgetary control makes it possible for top management to feel the pulse of the enterprise throughout the year. Thus, a budget is a tool that helps managers in both their planning and control functions Some specific advantages of budeting and budgetary control are given below:
It forces early consideration of basic policies.
It requires adequate and proper organisation – definite assignment of responsibility for each function of the business.
It compels all members of management from the top-down to participate in the establishment of goals.
It compels all members of the departmental management to make plans in harmony with plans of other departments.
It forces management to put down in cold figures what is necessary for satisfactory results.
It compels management to demand adequate historical accounting data.
It compels management to plan for the most economical use of labour, material, facilities and capital.
It instills in all levels of management the habit of timely, careful and adequate consideration of all the relevant factors before reaching important decisions.
It reduces cost by increasing the span of control since a less number of supervisors are needed.
It helps to implement the principles of “Management by Objectives” (MBO) and “Management by Exception” (MBE) by comparing actual performance against the planned one and highlighting the variances. Only significant variances are reported to the higher level managers for investigation. All others are supposed to conform with the plan and no time and effort be spent for them.
It tends to remove the cloud of uncertainty that exists in many firms, especially among lower levels of management relative to basic policies and objectives of the enterprise.
It pinpoints efficiency or inefficiency.
会计代写|中级管理会计代考Intermediate Management Accounting代写|ACCT5001 ESSENTIALS OF SUCCESSFUL BUDGETING
现代博弈论始于约翰-冯-诺伊曼（John von Neumann）提出的两人零和博弈中的混合策略均衡的观点及其证明。冯-诺依曼的原始证明使用了关于连续映射到紧凑凸集的布劳威尔定点定理，这成为博弈论和数学经济学的标准方法。在他的论文之后，1944年，他与奥斯卡-莫根斯特恩（Oskar Morgenstern）共同撰写了《游戏和经济行为理论》一书，该书考虑了几个参与者的合作游戏。这本书的第二版提供了预期效用的公理理论，使数理统计学家和经济学家能够处理不确定性下的决策。
会计代写|中级管理会计代考Intermediate Management Accounting代写|ACCT10001 NATURE AND SCOPE OF MANAGEMENT ACCOUNTING
会计代写|中级管理会计代考INTERMEDIATE MANAGEMENT ACCOUNTING代写|NATURE AND SCOPE OF MANAGEMENT ACCOUNTING
All organisations have goals and their managers need information as they strive to attain these goals. Information is needed for the management functions of planning, directing operations, controlling and decision-making. Management Accounting is an important part of the organisation’s management information system. Management Accounting information is purely optional, not mandatory, unregulated and drawn on data from the basic accounting system as well as other sources of data. It includes the following:
Financial Accounting This pertains to recording of all business transactions, preparation of a profit and loss account showing the results of the business and a balance sheet depicting assets and liabilities of the business. This, in turn, forms the basis for analysis and interpretation for providing meaningful data to the users of accounting information. Thus, without efficient financial accounting system, management accounting cannot be operative.
Cost Accounting – It refers to the classification, recording and allocation of expenditures for the determination of the cost of products or services and ensuring management control over the same. It provides information to users internal to the firm i.e. various levels of management. Management accounting uses many of the techniques of cost accounting such as standard costing, budgetary control, marginal costing, costvolume-profit analysis, differential, cost analysis etc.
Financial Management-Raising and use of finance, safeguarding assets and optimising the use of resources are important to the survival and growth of a business enterprise. It is in this context that management accounting is related to financial management.
Statistical Data – It is concerned with the supply of necessary statistical data and information by various departments of the business firm. Management accounting utilizes various tools and techniques of statistics like Time Series Analysis, Regression Analysis, Linear Programming, Game Theory etc. to analyse and interpret the data.
Electronic Data Processing – Management accounting utilizes the facility of computers in its accounting.
Quantitative Techniques – Of late, the use of quantitative techniques such as operations research, linear programming, game theory in area of managerial decision-making has increased considerably.
Taxation – It requires computation of profits in accordance with the provisions of the Income-tax Act and also prompt filing of returns periodically and payment of taxes. The management accountant has to depend on tax accounting to plan and minimise the tax liability of the firm.
Internal Control and Internal Audit – Management accountant heavily depends on internal financial controls like internal audit and internal check to ensure smooth operation of the financial system of the concern.
会计代写|中级管理会计代考INTERMEDIATE MANAGEMENT ACCOUNTING代写|FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING
Provision of accounting information lies at the basis of all accounting, whether financial, cost or management accounting. Accounting data are essential in managerial function of planning, control and decision-making. As such financial accounting is intimately related to management accounting. In spite of these common features, management accounting differs from financial accounting in the following respects:
会计代写|中级管理会计代考Intermediate Management Accounting代写|ACCT10001 NATURE AND SCOPE OF MANAGEMENT ACCOUNTING
现代博弈论始于约翰-冯-诺伊曼（John von Neumann）提出的两人零和博弈中的混合策略均衡的观点及其证明。冯-诺依曼的原始证明使用了关于连续映射到紧凑凸集的布劳威尔定点定理，这成为博弈论和数学经济学的标准方法。在他的论文之后，1944年，他与奥斯卡-莫根斯特恩（Oskar Morgenstern）共同撰写了《游戏和经济行为理论》一书，该书考虑了几个参与者的合作游戏。这本书的第二版提供了预期效用的公理理论，使数理统计学家和经济学家能够处理不确定性下的决策。
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