Chapter 14 Comments 8th ed

Chapter 14 Comments 8th ed - Instructor Comments Chapter...

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Instructor Comments Chapter Fourteen Hello chapter 14!!! Hopefully, this chapter will be a little easier for you than some of the previous chapters. In this chapter you will learn how to use accounting data to plan for the future. In particular, we learn how to use the budget to control costs in a manufacturing environment and to plan future operations. The chapter also includes an introduction to standard costs. Budgeting You should understand general budgeting concepts and the budgeting process. Note that the starting point to develop any budget requires an accurate estimate of expected sales. The sales/activity forecast is the starting point – and the key to the entire budgeting process . Exhibit 14-3 on page 541 should be especially useful to you. Note that after we determine the expected the number of units to be sold, it becomes a relatively simple matter to determine the number of units to be produced. Then we can determine raw material to be used, the direct labor
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This note was uploaded on 04/23/2011 for the course ACC 490 taught by Professor Johnthompson during the Spring '10 term at Murray State KY.

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Chapter 14 Comments 8th ed - Instructor Comments Chapter...

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