2M&L' A2 MA (1)

Management accounting

Title page

“Management Accounting: Costing and Budgeting”

Prepared for:

Ms. Nam Giang Dao (Lecturer)

Banking Academy, Hanoi

BTEC HND in Business (Finance)

Word number

Prepared by:

2M&L Group

PhanKhanhLinh – Raven

Nguyen QuynhTrang – Bolly

Tran ThiLanAnh – Jan

Nguyen Thanh Ha – Moon

1

Executive summary

Budgetary Planning and Control are very important and this report will classify the

Budgetary Planning and Control in three different cases:

Task 1:

Healthful food Inc. a manufacturer of breakfast cereals and snack bars, has experienced

several years of steady growth in sales, profits, and dividends while maintaining a

relatively low level of debts.

Truong Hai Tire Company’s

Task 2:

Eye Care Company, a distributor of eye care products, is ready to begin its third quarter,

in which peak sales occur. The company has requested a $30,000, 90-day loan from its

bank to help meet cash requirements during the quarter.

Task 3:

Moran Labs performs steroid testing services to high schools, colleges, and universities.

Because the company deals solely with educational institutions, the price of each test is

strictly regulated. Therefore, the costs incurred must be carefully monitored and

controlled.

Branson Manufacturing, Inc., produces a single type of small motor. The bookkeeper

who does not have an in-depth understanding of accounting principles prepared the

following performance report with the help of the production manager.

2

ContentsTitle page.........................................................................................................................................1

Executive summary.........................................................................................................................2

Introduction......................................................................................................................................4

Task 1a.............................................................................................................................................5

1. Budget play s important role in planning and control..............................................................5

2. Purposes of budgets.................................................................................................................6

3. Select appropriate budgeting methods for the organization and its needs...............................6

Task 1b.............................................................................................................................................9

Task 2.............................................................................................................................................14

Task 3a...........................................................................................................................................17

Task 3b...........................................................................................................................................21

Conclusion.....................................................................................................................................22

References......................................................................................................................................23

3

Introduction

This report was written to analyze Budgetary Planning and Controlling the operating companies

based on 4company Healthful food Inc. Truong Hai Tire Company’ sand Eye Care Company and

Branson Manufacturing, Inc. to highlight the importance of Budgetary Planning and Control in

maintaining the company's activities.

The scope:

1. Explain the purpose and nature of the budgeting process

2. Select appropriate budgeting methods for the organisation and its needs

3. Prepare budgets according to the chosen budgeting method

4. Prepare a cash budget

5. Calculate variances, identify possible causes and recommend corrective action

6. Prepare an operating statement reconciling budgeted and actual results

7. Report findings to management in accordance with identified responsibility centres

Limitation:

1. The calculation is not really adequate

2. Limited time

3. Difficulties in finding and analyzing information

4

Task 1a

1. Budget play s important role in planning and control

Budgets Budgeting is an integral part of the management function of planning, organizing,

motivating and controlling. One of the central tools used to carry out the management function is

a budget.

Need for planning

All organizations attempt to use scarce resources to achieve their goals. Goals may be long term

or short term. To achieve long-term goals (usually five to ten years) it is necessary to develop

long term strategic plans. These plans are concerned with broad objectives and goals—for

example to expand into Asia—so they do not indulge in too much specific detail.

To achieve long-term goals we need to develop short-term strategies that are incorporated into

annual budgets. These short-term plans are more detailed and consider the means to attain goals.

The means by which these short-term plans are converted into action is through the budgeting

process.

Short-term plans tend to use more quantitative data to estimate the future. These include dollar

values, sales quantities, production units, inventory levels, number of personnel and financial

ratios.

Need for controlling

Whether planning is done formally (by the use of budgets) or informally (in the manager’s head)

it does not in itself guarantee business success, as it needs to be monitored and adjusted. This

function of monitoring and adjustments is called controlling.

Keeping in mind that all plans (budgets) are best estimates of the future, management needs to

monitor its progress at regular intervals. It needs feedback on achievements and shortfalls so that

it can take remedial action. To facilitate this process of monitoring, yearly budgets are broken

down into smaller chunks such as months or even weeks so that if remedial action needs to be

5

taken it will not be too late.

The promptness and accuracy of feedback reports is essential to the whole process of controlling.

The reports should compare actual results against the budget. These reports are known as

variance reports. They require analysis to assess the progress of budget outcomes. Minor

variances are usually ignored but significant variances must be investigated so that appropriate

corrective action can be undertaken. (highered, n.d)

2. Purposes of budgets

The use of budgets is vital if the organization is to correctly perform necessary management

functions. Budgets aid in the planning process. When employed appropriately they facilitate

communication and can act as a motivational tool. They are also used as a basis for control and

performance measurement.

Advantages of budgeting include:

Budgeting forces management to plan for the future—to develop an overall direction for

the organization, foresee problems, and develop future policies.

Budgeting helps convey significant information about the resource capabilities of an

organization, making better decisions possible. Example: A cash budget points out

potential shortfalls.

Budgeting helps set standards that can control the use of a company’s resources and

control and motivate employees.

Budgeting improves the communication of the plans of the organization to each

employee. Budgets also encourage coordination because the various areas and

activities of the organization must all work together to achieve the stated objectives.

(annon, 2013)

6

3. Select appropriate budgeting methods for the organization and its needs.

According scenario, long-term plans of the company to achieve profitability as well as the

criteria set out in the first 4 years. With the first year of the plan will be less profit the following

year (20x1 with the income statement and balance with the lowest value) to pay due debts and

money purchasing equipment, machinery, etc. so will help to reduce costs for the company more

profitable and achieve its objectives.

Incremental VS zero-based budgets:

Incremental

Begin with current year’s core budget and make incremental changes.

Review focuses on incremental changes and may ignore inefficiencies in core budget.

Advantage Disadvantage

• The model operates under a stable and

predictable system and any change will

be gradual.

• Managers can operate their departments

on a consistent basis.

• The system is relatively simple to

operate and easy to understand.

• Conflicts should be easily avoidable if

departments can be seen to be treated

similarly.

• It is Appropriate where there is a large

number of cost centres/budgets to

calculate and forecasts do not change

significantly from one year to the next

• Co-ordination between forecasts is

easier to achieve.

• It assumes that activities and methods

of working will continue in the same

way.

• It allows no proper incentive for

managers to develop new innovative

ideas.

• Its normally on an upward trend, hence

providing no incentive for managers to

reduce costs.

• It encourages spending up to the budget

limits so that future estimates are

maintained next year.

• The forecast may become out of date

and no longer relate to the level of

activity or type of work being carried

out.

• The priority for resource allocation may

7

• The impact of change can be seen

quickly.

have changed ever since the prior

estimates were originally set.

• May perpetuate past inefficiencies. In

other words incremental budgeting does

not cause serious challenge to the status

quo of managers concerned because

different methods of achieving

performance objectives are not put to

test

• There may be budgetary slack built into

the estimates, which is never reviewed.

In other words Managers might have

overestimated their requirements in the

past in order to obtain a forecast which

is easier to work towards, and which

will allow them to achieve favorable

results.

Advantage and disadvantage of Incremental budgeting

Zero-based

Each line in item in total must be justified each year.

Motivates managers to eliminate inefficient expenses.

Useful when firm is changing strategic direction.

Becomes less useful when same justifications are used each year


It provides a systematic approach for The work involves in the creation of

8

the evaluation of different activities

and ranks them in order of preference

for the allocation of scarce resources.

It ensures that the various functions

undertaken by the organization are

critical for the achievement of its

objectives and are being performed in

the best possible way.

It provides an opportunity to the

management to allocate resources for

various activities only after having a

thorough cost-benefit-analysis. The

chances of arbitrary cuts and

enhancement are thus avoided.

The areas of wasteful expenditure can

be easily identified and eliminated.

Departmental budgets are closely

linked with corporation objectives.

The technique can also be used for the

introduction and implementation of the

system of ‘management by objective.’

Thus, it cannot only be used for

fulfillment of the objectives of

traditional budgeting but it can also be

used for a variety of other purposes.

decision-making and their subsequent

ranking has to be made on the basis of

new data. This process is very tedious

to management.

The activities selected for the purpose

of ZBB are on the basis of the

traditional functional departments. So

the consideration scheme may not be

implemented properly.

Advantage and disadvantage of zero-based (Management Accounting, n.d)

Fixed and Flexible

Fixed

9

A fixed budget, also known as a static budget, projects static levels of known income and

expenses over a set period of time. Fixed budgets are much simpler to create and to read than

flexible budgets and are generally acceptable for situations where the levels of income and

expense are not expected to fluctuate through the duration of the budgeting period.

Advantages:

No need to adjust your Budget each month.

Allow you to plan ahead.

Easier to track and keep your Budget

Works for People on a Fixed Income

Flexible

When a fixed budget is adjusted to account for variable results, it can be referred to as a

flexible budget. When implemented during the budgeting process, a flexible budget helps a

business account for future changes in any expense or income account. Multiple flexible

budgets drawn up to forecast various levels of economic activity may be complicated but

prepare a business well for any fluctuations in business levels, planned or otherwise.


Uncertainty analysis

Improved performance evaluation

Useful variance analysis

Makes prediction difficult

Too many variables

Can't estimate taxes

Advantages and disadvantages of flexible

Top-down and bottom- up method

Bottom-up

• High deployment coverage in early phases

10

• Earlier return on investment

• High visibility of organizational changes

• Higher impact to organization


•Realized in the early phases

•Easily in implement password a large

management

•Improve manage skill and knowledge

•You do not have to develop custom

adapters in the early phases.

• The organizational structure you

establish might have to be changed in a

later rollout phase.

• Because of the immediate changes to

repository owners and the user

population, the rollout will have a higher

impact earlier and require greater

cooperation.

• This strategy is driven by the existing

infrastructure instead of the business

processes.

Advantage and disadvantage of Bottom-up (IBM, n.d)

Top-down

• Tactical, limited coverage

• Delayed return on investment

• Lower impact to overall organization

• Higher deployment costs


•Organization realizes a focused use of

resources from the individual managed

application.

•The first implementation becomes a

showcase for the identity management

solution.

•When the phases are completed for the

•The solution provides limited coverage in

the first phases.

•A minimal percentage of user accounts are

managed in the first phases.

•You might have to develop custom

adapters at an early stage.

•The support and overall business will not

11

managed application, you have

implemented a deeper, more mature

implementation of the identity

management solution.

•Operation and maintenance resources are

not initially impacted as severely as with

the bottom-up approach.

realize the benefit of the solution as

rapidly.

•The implementation cost is likely to be

higher.

Advantage and disadvantage of Top-down (IBM, n.d)

12

Task 1bSale budget

Passenger Truck

Budgeted sales in units 116,400 27,000

Budgeted selling price per unit 65 200

Budgeted sales 7,566,000 5,400,000

Total budgeted sales = 7,566,000 + 5,400,000 = 12,966,000

Explain

Budgeted sales = Budgeted sales in units x Budgeted selling price per unit

Production budget

Passenge

r Truck

Budgeted sales in units 116,400 27,000

Desired ending FG inventory 6,590 2,360

Total units required 122,990 29,360

Less: beginning FG inventory -5,000 -2,000

Required production in units 117,990 27,360

Total required production in units = 117,990 + 27360 = 145,350

Explain

Total units required = Budgeted sales in units + Desired ending FG inventory

Required production in units = Total units required - beginning FG inventory

Because there were some lost in production, required production in units = good production

required in finishing department.

Passenger Truck

Good production required in finishing department 117,990 27,360

Good yeild in finishing department 92% 96%

13

Gross production in finishing department 128,250 28,500

Good production required in molding department 128,250 28,500

Good yeild in molding department 95% 95%

Gross production in molding department 135,000 30,000

DM budget

Steel belts Passenger Truck Total


DM required per units, in pounds 1.5 4

Total DM required, in pounds 202,500 120,000 322,500

Less: beginning DM inventory 7,000

Plus: desired ending DM inventory 6,000

Required DM purchases 202,500 120,000 321,500

Budgeted DM cost per unit per pound 3 3

Budgeted cost of DM 604,500 357,000 964,500

Rubber Passenger Truck Total


DM required per units, in pounds 10 30

Total DM required, in pounds 1,350,000 900,000 2,250,000

Less: beginning DM inventory 75,000

Plus: desired ending DM inventory 60,000

Required DM purchases 1,350,000 900,000 2,235,000

Budgeted DM cost per unit per pound 2

Budgeted cost of DM 2,700,000 1,800,000 4,470,000

5,434,500

Explain

Total DM required, in pounds = Required production in units x DM required per units, in

pounds

14

Budgeted cost of DM = Required DM purchases x Budgeted DM cost per unit per pound

DL budget

Molding department Passenger Truck Total

Gross production required in units 135,000 30,000

Direct labor required per unit in hours 0.1 0.25

Total direct labor hours required 13,500 7,500

Budgeted cost per DLH $15 $15

Budgeted Direct labor cost 202,500 112,500 315,000

Finishing department Passenger Truck Total

Gross production required in units 128,250 28,500

Direct labor required per units, in

hours 0.05 0.15

Total direct labor hours required 6,412.50 4,275

Budgeted cost per DLH $13 $13

Budgeted Direct labor cost 83,362.50 55,575

138,937.5

0

Total Budgeted Direct labor cost = 315,000 + 138,937.50 = 453,937.50

Explain

Total direct labor hours required = Gross production required in units x Direct labor

required per units, in hours

Budgeted Direct labor cost = Total direct labor hours required x Budgeted cost per DLH

Manufacturing overhead budget

Molding department Passenger Truck Total

Total direct labor hours required 13,500 7,500

15

OVH per direct labor hour 21.841 21.841

OVH absorbed 294,853.50

163,807.5

0 458,661.00

Finishing department Passenger Truck Total

Total direct labor hours required 6,412.50 4,275

OVH per direct labor hour 21.841 21.841

OVH absorbed 140,055.41

93,370.2

8

233,425.6

9

Total OVH absorbed = 458,661.00 + 233,425.69 = 692,100

Explain

OVH absorbed = Total direct labor hours required x OVH per direct labor hour

Ending inventory budget

Passenger Truck Total

Budgeted cost of direct material to

be used:

Steel belts 607,500 360,000

Rubber 2,700,000 1,800,000

Budgeted Direct labor cost 285,862.50 168,075

Budgeted manufacturing overhead 434,908.91 257,177.78

Total budgeted manufacturing cost 4,028,271.41 2,585,252.78

Good production in unit 117,990 27,360

Budgeted cost per unit 34.14 94.49

Budgeted ending FG, in unit 6,590 2,360

Budgeted cost of ending FG 224,982.60 223,000 447,982.60

Explain

16

Total budgeted manufacturing cost = Budgeted cost of direct material to be used +

Budgeted Direct labor cost + Budgeted manufacturing overhead

Budgeted cost of goods sold

Passenger Truck Total

Beginning FG inventory 175,000 240,000

Total budgeted manufacturing cost 4,028,271.41 2,585,252.775

Cost of goods available for sale 4,203,271.41 2,825,252.775

Less(-): Budgeted ending FG inventory 224,982.6 223,000

Budgeted cost of goods sold 3,978,288.81 2,602,252.775 6,580,541.585

Explain

Cost of goods available for sale = Beginning FG inventory + Total budgeted

manufacturing cost

Budgeted Income Statement

Sales 12,966,000

Cost of goods sold 6,580,541.585

Gross profit 6,385,458.415

Operating cost

Advertising expense 942,000

Office rent expense 125,000

Office salaries expense 821,000

Office supplies expense 45,500

Officers’ salaries expense 661,000

Sales salaries expense 868,000

17

Telephone and fax expense 33,500

Travel expense 443,000 25932000

Net income 2,446,458.415

Explain

Gross profit = Sales - Cost of goods sold

Net income = Gross profit - Operating cost

Task 2

Cash budget

July

($)

August

($)

September

($)

Quarter

($)

Beginning cash balance 46,000 11,000 15,000 46,000

Add: Cash collections

Cash collection from sales 253,500 342,000 369,000 964,500

From current month 87,500 102,500 85,000

1 month ago 156,000 227,500 266,500

2 month ago 10,000 12,000 17,500

Borrowing 30,000 30,000

Total collection 283,500 342,000 369,000 994,500

Total cash available 329,500 353,000 384.000 1,040,500

Less cash disbursement

Purchase of inventory 157,500 210,000 246,000

Salaries and wages 29,000 30,000 30,000

Advertising 78,000 91,000 67,000

Rent payments 7,000 7,000 7,000

Equipment purchased 47,000

Interest payment 900

Loan repayment 30,000 30,000

18

Total cash disbursement 318,500 338,000 380,900 1,037,400

Ending cash balance 11,000 15,000 3,100 3,100

Table 1: Cash budget with beginning cash balance is $46,000

Explain:

To calculate Cash collection from sale, we get the sum of Cash from current month, Cash

from 1 month ago and Cash from 2 month ago.

The Total collection equal to Cash collection from sale add Borrowing cash

The Total cash available equal to Total collection add Beginning cash balance

If the company needs a minimum cash balance of $10,000 to start each month, the cash

budget will be like the following table:

Cash budget

July

($)

August

($)

September

($)

Quarter

($)

Beginning cash balance 10,000 (15,000) (1,000) 10,000

Add: Cash collections

Cash collection from sales 253,500 342,000 369,000 964,500

From current month 87,500 102,500 85,000

1 month ago 156,000 227,500 266,500

2 month ago 10,000 12,000 17,500

Borrowing 30,000 30,000

Total collection 283,500 342,000 369,000 994,500

Total cash available 293,500 327,000 368,000 988,500

Less cash disbursement

Purchase of inventory 157,500 210,000 246,000

Salaries and wages 29,000 30,000 30,000

Advertising 78,000 91,000 67,000

19

Rent payments 7,000 7,000 7,000

Equipment purchased 47,000

Interest payment 900

Loan repayment 30,000 30,000

Total cash disbursement 318,500 338,000 380,900 1,037,400

Ending cash balance (25,000) (11,000) (22,900) (48,900)

Table 2: Cash budget with beginning cash balance is $10,000

Explain:

As we can see from the table, if the company needs a minimum cash balance of $10,000 to

start each month, the ending cash balance for each month always lower than total cash

disbursement. In fact, in September have to $3,100 to repayment, but in this case, the

company cannot pay on time in September. Therefore, the loan can’t be repaid as planned.

20

Task 3a

Operating statement

Budgeted profit before sales and administrative cost

Sales volume variances

Budgeted profit from actual sales

Selling price variance

Actual sales minus standard cost of sales

Cost variances:

$15,600

$2,600 U

$13,000

$0

$13,000

Unfavorable Favorable

Material variances

Price variance

Efficiency variance

Direct labour variances

Rate variance

Efficiency variance

Variable MOVH variances

Spending variance

Efficiency variance

Fixed MOVH variances

Expenditure variance

Volume variance

$253

$60

$1,240

$180

$1,000

$200

$80

$300

$2,733 $580 $2,153 U

Actual profit before sales and administrative

costs

Sales and administrative costs

$10,847

$2,000

Actual profit $8,847

21

Check

Sales

Materials

Labour

Variable overhead

Fixed overhead

Sales and administrative costs

$58,000

$5,313

$26,040

$10,100

$5,700

$2,000

Profit $8,847

Explain

Actual quantity

x

Actual price

Actual quantity

x

Standard price

Standard quantity

x

Standard price

2,530 dishes

x

$2.1 (= $5,313/2,530)

=$5,313

2,530 dishes

x

$2

= $5,060

2,500 dishes

x

$2

= $5,000

Material price variance = $5,313 - $5,060 = $253 U

Material quantity variance = $5,060 - $5,000 = $60 U

Actual hours

x

Actual rate

Actual hours

x

Standard rate

Standard hours

x

Standard rate

1,240 hours

x

$21 (= $26,040/1,240)

= $26,040

1,240 hours

x

$20

= $24,800

1,250 hours

x

$20

= $25,000

22

Labor rate variance = $26,040 - $24,800 = $1,240 U.

Labor efficiency variance = $24,800 - $25,000 = $200 F

Actual hours

x

Actual rate

Actual hours

x

Standard rate

Standard hours

x

Standard rate

1,240 hours

x

$8.145(= $10,100/1,240)

= $10,100

1,240 hours

x

$8

= $9,920

1,250 hours

x

$8

= $10,000

Variable manufacturing spending variance = $10,100 - $9,920 = $180 U

Variable manufacturing efficiency variance = $9,920 – $10,000 = $80 F

Standard Unit = Budgeted¿ overhead ¿Standard hpur x Standard absorption rate =

$6,0000.5 hour x $ 4 = 3,000 units

Fixed manufacturing volume variance = (Standard unit – Actual unit) x Standard

absorption rate= (3,000 units – 2,500 units) x $4 x 0.5 hour = $1,000 U

Fixed manufacturing expenditure variance = Actual fixed OVH – Budgeted fixed

OVH = $5,700 - $6,000 = $300 F

Sales quantity variance = (Actual units – Budgeted units) x Budgeted sale price =

(2,500 units – 3,000 units) x ($23.2 - $18) = $2,600 U

ASP = Actual revenues

Actual units = $58,000

2,500units = $23.2

Sales price variance = (Actual sale price – Budgeted sale price) x Actual units sales =

($23.2 - $23.2) x 2,500 units = $0

23

Variance U/F Possible causes Who takes

responsibility?

Recommendation

Cost

centre

Sale

volume

U Inaccurate

predictions

Decrease in

demand

Sale manager

-

Use better strategies in

selling

Better estimate of

demand

Revenue

centre

Material U Lost in production

Increase in market

price

Poor estimates

-

-

Production

manager

Maintain and check

machine regularly

Use interest rate when

making budget

Use cheaper materials

instead

Direct

labor

U Unforeseen

complexities

Increase in market

price

Poor estimates

-

-

Production

manager

Devise contingency

plans

Use interest rate when

making budget

Use cheaper labor

instead

Variable

MOVH

U A shortage in

available indirect

materials

Utility costs to run

the machines high

energy cost high

Purchasing

manager

-

Increase in estimate skill

Anticipate costs that

may arise

Explain:

24

Sale volume variance: sale volume variance can be unfavorable because of many reasons.

Two of them might be inaccurate predictions and decrease in demand. Inaccurate

prediction is caused by poor estimation of sale manager so sale manager should take the

responsibility. Moreover, they should improve estimation skill and strategic to increase

sale volume in the future. However, if the cause is decrease in demand, nobody will take

the responsibility because it depends on the market and it is very difficult to predict.

Material variance: material variance is easy to be unfavorable because material can be

lost a part in the production. This is unavoidable in production so the responsibility

belongs to no one. To solve this problem, they should maintain and check machine

regularly to avoid lost as much as possible. Another cause might be the increase in

market price and it usually happens because of the inflation. Therefore, they should use

interest rate when making budget to solve this issue.

Direct labor variance: direct labor variance can be unfavorable because of unforeseen

complexities and the increase in market price. Unforeseen complexities is often seen

when fire staff, sick employees… Devise contingency plans is the best way to deal with

this problem. The increase in market price is also a main cause and we need using interest

rate too.

Variable MOVH variance: a shortage in available indirect materials and utility costs to

run the machines high is 2 main causes which can make the unfavorable variable MOVH.

A shortage in available indirect materials must be the responsibility of the purchasing

manager and purchasing manager should improve estimate skill more. Utility cost to run

machine should be solved by anticipate costs that may arise.

25

Task 3b

Operating Statement

Flexible Budget

per unit

Actual Result Flexible

budget

Variances

45,000 units 45,000 units

Sales $25.00 $1,125,000 $1,125,000 0

Less variable expenses:

Direct materials 4.50 $212,500 202,500 10,000(U)

Direct labor 3.75 175,750 168,750 7,000(U)

Variable factory OVH 2.25 110,250 101,250 9,000(U)

Variable selling and

administrative expense1.50 70,500 67,500 3,000(U)

Total variable expense $12.00 $569,000 $540,000 29,000(U)

Contribution margin $13.00 $556,000 $585,000 (29,000)

Less fixed expense

Fixed factory expense $100,000 $95,000 100,000 (5,000)

Fixed selling and

administrative expense150,000 160,000 150,000 10,000

Total fixed expense $250,000 $255,000 $250,000 5,000

Income from operation $301,000 $335,000 ($34,000)(U)

Table 3: Operating Statement

As we can see from the table above, the value in Flexible budget is lower than Actual results in

direct materials, Direct labor, Variable factory OVH, Variable selling and administrative

expense. It means the budget is not better, or unfavorable than actual budget. Furthermore, in

26

Income from operation, the Actual result is lower than Flexible budget ($301,000 < $335,000).

Therefore, the Production Manager must have responsibility for this case because he is not

estimated correctly the amount to be used in production process

27

Conclusion

To sum up, all the tasks required has been completed. Budget for healthful foods Inc, cash budget for Eye Care Company, operating statement for Moran Labs, and revised performance report for Branson Manufacturing Inc.

In this report, all the pros and cons of budgeting method is shown and from that, we can have an obvious scene of budgeting method and how it works in specific company

Through this report, our goals are achieved with better understanding of managing accounting module and better writing skills.

28

References

Csun.edu. n.d.. Untitled. [online] Available at:

http://www.csun.edu/~hcbus012/acct380/guides/chapter08.docusg=AFQjCNH28tYOcTygWDH

h3QHhy0QrdrM1aA&sig2=TYP6TqWxYEwdGgwCf2S [Accessed: 17 Jun 2013].

Managerial-accounting.blogspot.com. 2012. Management Accounting: Advantages and

disadvantages of Zero-base budgeting. [online] Available at: http://managerial-

accounting.blogspot.com/2012/11/advantages-and-disadvantages-of-zero.html [Accessed: 1 Aug

2013].

Publib.boulder.ibm.com. n.d.. Advantages and disadvantages of the top-down andbottom-up

implementation approaches. [online] Available at:

http://publib.boulder.ibm.com/tividd/td/ITIM/SC32-1708-00/en_US/HTML/im460_plan76.htm

[Accessed: 17 Jun 2013].

Unknown. n.d.. Untitled. [online] Available at:

http://highered.mcgraw-hill.com/sites/dl/free/0074711717/57451/Budgeting_Ch09.pdf

[Accessed: 17 Jun 2013].

29

Documents

2M&L' A2 MA (1)