Class Notes Chapters 10 and 11

Class Notes Chapters 10 and 11 - below relates to his...

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The University of Texas at Austin McCombs School of Business, Business Foundations Program ACC 310F: Foundations of Accounting, Fall 2010 Class Notes – Chapter 10 and pages 254-256 of Chapter 11 Budgetary Control Activities 1. Develop budget 2. Analyze differences between actual and budget 3. Take corrective action 4. Modify future plans Static Budget Report Flexible Budget Report Page 1
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Responsibility Accounting Controllable versus Noncontrollable Cost center Profit center Investment center o Return on Investment (ROI) o Controllable Margin / Average Operating Assets Principles of Performance Evaluation Behavioral Principles Reporting Principles Balanced Scorecard Page 2
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Financial Perspective Customer Perspective Internal Process Perspective Learning and Growth Perspective Practice Problems (Answers are posted in the Course Documents section of Blackboard) 1. Bob Johnson manages the production department of a small manufacturing company; the information
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Unformatted text preview: below relates to his recent performance: Required a. Prepare a flexible budget report for Bob Johnson. b. Speculate what may have caused the budget differences. c. What course of action(s) would you suggest Bob Johnson take. 2. Austin Hills Manufacturing produces video game consoles. The original budget for January was based on expected production of 20,000 units; actual production for January was 18,250 units. The original and actual costs incurred for the manufacturing department are as follows: Original Budget Actual Costs Direct Materials $451,250 $455,390 Direct Labor $350,000 $346,600 Variable Overhead $168,500 $156,000 Fixed Overhead $210,000 $212,000 Total $1,179,750 $1,169,990 Required a. Prepare a flexible budget report for the manufacturing department. Page 3...
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This note was uploaded on 03/28/2012 for the course ACC 310F taught by Professor Verduzco during the Fall '07 term at University of Texas.

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Class Notes Chapters 10 and 11 - below relates to his...

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