INTERNATIONAL MASTER OF BUSINESS PROGRAMME Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Subject: ACCT620 Financial Accounting Class: GaMBA01.C02 Student name: Truong Minh Chien, ID # 113408 Final Individual Assessment TOPIC: PERFORMENT OF BUDGET ESTIMATES STATEMENT INTRODUCTION 1 – Background : Accounting is defined as the measurement of information systems, process and provide useful information for making executive decisions on production and business activities of enterprises. In which management accounting (according to standard circular No. 55/2002 dated 26/6/2002 of the Prime Minister and the supplementary circular No. 5 / 2007 June 25, 2007 and Circular No. 3 / 2008 January 25, 2008) offer all the economic information was measurement process and provide leadership to business operations business. In other words, management accounting helps business leaders to consider and decide on one plan has the highest economic efficiency: to produce the product, how the production and sale of product that way, what price, how to effectively use resources and develop production capabilities. These include two types of decisions: Short-term decisions: The decision to support to solve of the business problems in the short-term period. Long-term decision: This resolutions help enterprise resolve tasks economically long-term investment strategic planning as: In which case purchase replacement resolution enterprise adds plant machineries or business scope accretion exec. 2 - Purpose Applying the theory of management accounting to solve exercises TL4.3 and BT 4.4. Since then draw the lessons of experience and practical help for the operation of Son Trang Ly Ltd company. 1/ 5 INTERNATIONAL MASTER OF BUSINESS PROGRAMME Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 3 - Progress This report is realized bases upon below steps: i. Understand and gather information ii. Calculate and performed budget estimates statement iii. Conclusion PERFORMENT OF BUDGET ESTIMATE Topic TL 4.3 : Sam is the head of marketing at Anh Duong Factory, which specialized in producing all kinds of table and decorative lamps. Sam’s department is part of the estimation sell all kinds of lighting companies. Sam asked the employees "under the New Year sales have increased 12% plan on all fresh products." These estimates will be affected by plans to increase sales? Solve. In this case, Sam is the director of marketing at Anh Duong factory and direct sale of all goods is the company's lamps. Therefore, these estimates will affect plans to increase sales by as : i. Consumption Estimates ii. Administrative wages and sales cost iii. Income estimates statement iv. Balance Estimates Statement v. Cash-flow estimates statement Figure 1 Circular No. 3 / 2008 January 25, 2008 of Prime Minister and the estimation system standard VAS 29 Vietnam 2/ 5 INTERNATIONAL MASTER OF BUSINESS PROGRAMME Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Assignment BT 4.4 : Light Company specializes in manufacturing mid-autumn lantern. Chlorophyll lanterns were sold in September every year. There is a part of the estimated sales figures year following the company's 20x1: July August September October 7.500 17.500 25.000 5.000 Company made every month inventory level is 10% of sales in the next month. Total inventories in June was 750 units. Each product needs to 0:02 hours of direct labor, salary is 20,000 VND per hour. Let's estimate of direct labor for 3 rd quarter years 20x1, which reflect the direct labor hours and direct labor costs per month and the entire third quarter. Solve. Because inventory is 750 units in June and expected the stock inventory is 10% per month, because things have : Inventory Forecast June July August September Third Quarter Total products Standard Real Stadard Real Standard Real Standard Real 750 7500 6750 17500 16750 25000 23250 50000 46750 According from above forecast, we can make the direct labor estimate of Ruc Ro Ltd. Company as: Ruc Ro Ltd. Company Direct Labor Cost Estimates For third quarter ended on September 30, 20x1 Month 3 rd Quarter 7 8 9 Total estimates manufacturing overhead (units) Direct labor hour per unit (hours) Total estimates direct labor hours (hours) Direct labor cost per unit ($) Total estimates direct labor cost ($) 6,750 0.02 135 20,000 2,700,000 16,750 0.02 335 20,000 6,700,000 23,250 0.02 465 20,000 9,300,000 46,750 0.02 935 20,000 18,700,000 Forecasting Ruc Ro company will have 2,500 units inventory at the end of 3 rd Quarter September 30, 20x1 3/ 5 INTERNATIONAL MASTER OF BUSINESS PROGRAMME Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CONCLUSION Finally, through the exercises TL BT 4.3 and 4.4 above, I have a better understanding of management accounting reports of accountant Mrs. Chau of SonTrang Ly Ltd. company. In fact, so far we always make budget estimates and estimates of labor's full by year. But as an IT company, so we just estimating when you get orders. Through lesson Economic Management Course, I have a better understanding of the management accounting and would encourage quarterly estimates in the quarter although the company did not receive the order. This can help us reduce risks in business and also better management of financial companies. 4/ 5 INTERNATIONAL MASTER OF BUSINESS PROGRAMME Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn REFERENCE TEXTBOOK: 1. Lecture notes and articles of ACCT620 Financial Accounting course(Griggs University) 2. Jerry J. Weygandt & Donald E. Kiesi & Paul D. Kimmel, “Financial Accounting”, 5 th edition, Wiley & Son, 2006, ISBN : 0-471-72605-2. 3. Financial Bureau of Vietnam, “Manual of Accounting For Director and Accounting Manager In Enterprise”, Lao Dong – Xa Hoi, 2009, ISBN: 89-35206-50099-8. INFORMATION RESOURCE: 4. Ho Chi Minh Stock Exchange Center 5. Chula bookstore of Thailand Kingdom 6. Phuong Nam Bookstore of Vietnam (PNC group) OTHER IMPORTANCE ARTICLES: 7. Website: http://tailieu.vn/xem-tai-lieu/thong-tu-so-55-2002-tt-btc.87214.html 5/ 5 . PERFORMENT OF BUDGET ESTIMATE Topic TL 4.3 : Sam is the head of marketing at Anh Duong Factory, which specialized in producing all kinds of table and decorative. to increase sales? Solve. In this case, Sam is the director of marketing at Anh Duong factory and direct sale of all goods is the company's lamps.