Budgeting and Decision Making Larry M Walther; Christopher J Skousen Download free books at Budgeting and Decision Making © 2009 Larry M Walther, under nonexclusive license to Christopher J Skousen & Ventus Publishing ApS All material in this publication is copyrighted, and the exclusive property of Larry M Walther or his licensors (all rights reserved) ISBN 978-87-7681-492-2 Download free eBooks at bookboon.com Contents Budgeting and Decision Making Contents Part Budgeting: Planning for Success 1.1 1.2 1.3 1.4 Importance of Budgets Forms and Functions Avoiding Business Chaos An Electrifying Case in Budgeting Recapping Beneits of Budgeting 10 10 10 11 12 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 Budget Processes and Human Behavior Budget Construction Mandated Budgets Participative Budgets Blended Approach Organizational Structure Considerations Flattening the Organization Chart Budget Estimation Slack and Padding Zero-Based Budgeting The Impossible Budget and Employee Capitulation Ethical Challenges in Budgeting 14 14 14 15 16 16 16 17 17 17 18 19 3.1 3.2 3.3 3.4 Components of the Budget Sales Budget Production Budget Direct Material Purchases Budget Direct Labor Budget 20 21 23 24 26 www.sylvania.com We not reinvent the wheel we reinvent light Fascinating lighting offers an ininite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges An environment in which your expertise is in high demand Enjoy the supportive working atmosphere within our global group and beneit from international career paths Implement sustainable ideas in close cooperation with other specialists and contribute to inluencing our future Come and join us in reinventing light every day Light is OSRAM Click on the ad to read more Download free eBooks at bookboon.com Contents Budgeting and Decision Making 3.5 3.6 3.7 3.8 3.9 3.10 Factory Overhead Budget Selling and Administrative Expense Budget Cash Budget Budgeted Income Statement and Balance Sheet External Use Documents Performance Appraisal 26 28 29 31 31 33 4.1 4.2 4.3 Budget Periods and Adjustments Continuous Budgets Flexible Budgets Encumbrances 34 34 34 35 Part Tools for Enterprise Performance Evaluation 36 Responsibility Accounting and Management by Exception Centralized Versus Decentralized Decision-Making Responsibility Centers Cost Center Proit Center Investment Center Afixing Responsibility Responsibility Center Reports The Power of a Data Base System Traceable Versus Common Fixed Costs Management by Expansion 37 37 38 38 39 39 40 41 44 44 45 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 360° thinking Discover the truth at www.deloitte.ca/careers © Deloitte & Touche LLP and affiliated entities Click on the ad to read more Download free eBooks at bookboon.com ... Contents Budgeting and Decision Making Contents Part Budgeting: Planning for Success 1.1 1.2 1.3 1.4 Importance of Budgets Forms and Functions Avoiding Business Chaos An Electrifying Case in Budgeting. . .Budgeting and Decision Making © 2009 Larry M Walther, under nonexclusive license to Christopher J Skousen & Ventus Publishing ApS All material in this publication is copyrighted, and the... the Organization Chart Budget Estimation Slack and Padding Zero-Based Budgeting The Impossible Budget and Employee Capitulation Ethical Challenges in Budgeting 14 14 14 15 16 16 16 17 17 17 18 19