152x Filetype PPT File size 1.87 MB Source: www.ocw.upj.ac.id
8 -2 Objectives Objectives Objectives Objectives 1. Discuss budgeting and its role in planning, After studying this After studying this After studying this After studying this control, and decision making. chapter, you should chapter, you should chapter, you should chapter, you should 2. Define and prepare a master budget, identify be able to: be able to: be able to: be able to: its major components, and explain the interrelationships of its various components. Continued Continued Continued Continued 8 -3 Objectives Objectives Objectives Objectives 3. Describe flexible budgeting, and list the features that a budgetary system should have to encourage managers to engage in goal- congruent behavior. 4. Explain how activity-based budgeting works. Planning 8 -4 Strategic Plan Strategic Plan Long-Term Long-Term Objectives Objectives Budgeting Short-Term Short-Term and Objectives Objectives Short-Term Planning Short-Term Plan Plan and Control Budgets Budgets Feedback Feedback Planning Control 8 -5 Strategic Plan Strategic Plan Monitoring of Monitoring of Actual Activity Long-Term Actual Activity Long-Term Objectives Objectives Short-Term Short-Term Objectives Objectives Short-Term Short-Term Comparison of Plan Comparison of Plan Actual with Actual with Planned Budgets Planned Budgets Feedback Investigation Feedback Investigation Corrective Action Corrective Action 8 -6 Advantages of Budgeting Advantages of Budgeting Advantages of Budgeting Advantages of Budgeting 1. It forces managers to plan. 2. It provides information that can be used to improve decision making. 3. It provides a standard for performance evaluation. 4. It improves communication and coordination.
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