Chapter 7 - Budgetary control and responsibility accounting. After studying this chapter, you should be able to: Describe the concept of budgetary control, evaluate the usefulness of static budget reports, explain the development of flexible budgets and the usefulness of flexible budget reports, describe the concept of responsibility accounting,. | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University. with contributions by Marianne Bradford The University of Tennessee. Gregory K. Lowry . Macon Technical Institute Managerial Accounting Weygandt, Kieso, & Kimmel 1 Chapter 7 Budgetary Control and Responsibility Accounting After studying this chapter, you should be able to: 1 Describe the concept of budgetary control. 2 Evaluate the usefulness of static budget reports. 3 Explain the development of flexible budgets and the usefulness of flexible budget reports. 4 Describe the concept of responsibility accounting. Chapter 7 Budgetary Control and Responsibility Accounting After studying this chapter, you should be able to: 5 Indicate the features of responsibility reports for cost centers. 6 Identify the content of responsibility reports for profit centers. 7 Explain the basis and formula used in evaluating performance in investment centers. Chapter 7 Budgetary . | John Wiley & Sons, Inc. Prepared by Karleen Nordquist The College of St. Benedict. and St. John’s University. with contributions by Marianne Bradford The University of Tennessee. Gregory K. Lowry . Macon Technical Institute Managerial Accounting Weygandt, Kieso, & Kimmel 1 Chapter 7 Budgetary Control and Responsibility Accounting After studying this chapter, you should be able to: 1 Describe the concept of budgetary control. 2 Evaluate the usefulness of static budget reports. 3 Explain the development of flexible budgets and the usefulness of flexible budget reports. 4 Describe the concept of responsibility accounting. Chapter 7 Budgetary Control and Responsibility Accounting After studying this chapter, you should be able to: 5 Indicate the features of responsibility reports for cost centers. 6 Identify the content of responsibility reports for profit centers. 7 Explain the basis and formula used in evaluating performance in investment centers. Chapter 7 Budgetary Control and Responsibility Accounting Preview of Chapter 7 Concept of Budgetary Control Static Budget Reports Illustrations Uses and Limitations BUDGETARY CONTROL AND RESPONSIBILITY ACCOUNTING Flexible Budgets Why Flexible Budgets? Development Case Study Reports Management by Exception Preview of Chapter 7 Concept of Responsibility Accounting Controllable vs. Noncontrollable Reporting System Types of Responsibility Centers Cost Centers Profit Centers Investment Centers Performance Evaluation BUDGETARY CONTROL AND RESPONSIBILITY ACCOUNTING Describe the concept of budgetary control. Study Objective 1 Budgetary Control The use of budgets in controlling operations is known as budgetary control. The centerpiece of budgetary control is the use of budget reports that compare actual results with planned objectives. The budget reports provide the feedback needed by management to see whether actual operations are on course. Budgetary Control Budgetary control involves: Developing budgets. Analyzing .
