(BQ) Part 2 book "Cost accounting" has contents: The master budget, capital budgeting, financial management, innovative inventory and production management techniques, emerging management practices, responsibility accounting and transfer pricing in decentralized organizations,.and other contents. | CHAPTER The Master Budget 13 L E A R N I N G O B J E C T I V E S After completing this chapter, you should be able to answer the following questions: 1 Why is budgeting important? 2 How is strategic planning related to budgeting? 3 What is the starting point of a master budget and why? 4 How are the various schedules in a master budget prepared and how do they relate to one another? 5 Why is the cash budget so important in the master budgeting process? 6 What benefits are provided by a budget? 7 (Appendix) How does a budget manual facilitate the budgeting process? The INTRODUCING HON Company T he HON Company, a wholly-owned subsidiary of HON INDUSTRIES Inc. and a Fortune 1000 company, is highly regarded in the office furniture manufacturing industry. The company is recognized as America’s leader in value office furniture, and the largest domestic manufacturer of middle market office furniture, offering the industry’s broadest lines of office furniture in both wood and steel. A nationwide distribution network and world-class manufacturing capabilities strategically located throughout the United States provide efficient product delivery. The company was incorporated in 1944 under the leadership of founder C. Maxwell Stanley. He believed success in business would come to a company that anchored its activities in treating customers, suppliers, workforce, and neighbors with fairness and respect. Stanley invited Clement T. Hanson, a brother-in-law and successful advertising executive, and H. Wood Miller, an industrial designer, to join him in founding a company on these principles. The three pooled their resources to incorporate “The Home-O-Nize Co.” They planned to make a revolutionary design of steel kitchen cabinets, but a postwar shortage of steel delayed operations. The firm’s first product was a small index card file box that sold for kitchen use. They initially decided to provide manufacturing services to other .
