(BQ) Part 1 book "Managerial accounting" has contents: Profit planning, flexible budgets and performance analysis, standard costs and operating performance measures, relevant costs for decision making, segment reporting, decentralization, and the balanced scorecard,.and other contents. | Chapter Page 368 12/19/08 9:23:35 PM user-s180 9 /broker/MH-BURR/MHBR094/MHBR094-09/upload Profit Planning Lilo & Stitch on Budget LEARNING OBJECTIVES After studying Chapter 9, you should be able to: Understand why organizations budget and the processes they use to create budgets. LO2 Prepare a sales budget, including a schedule of expected cash collections. LO3 Prepare a production budget. LO4 Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials. LO5 Prepare a direct labor budget. LO6 Prepare a manufacturing overhead budget. LO7 Prepare a selling and administrative expense budget. LO8 Prepare a cash budget. LO9 Prepare a budgeted income statement. LO10 Prepare a budgeted balance sheet. 368 Source: Bruce Orwall, “Comics Stripped: At Disney, String of Weak Cartoons Leads to Cost Cuts,” The Wall Street Journal, June 18, 2002, pp. A1 and A8. B U S IN E SS F O CU S LO1 The full-length feature cartoon Tarzan grossed about $450 million worldwide for the Walt Disney Company. However, production costs got out of control. The company traditionally manages film production by focusing on meeting the planned release date—paying little attention to costs. In the case of Tarzan, production fell behind schedule due to the tendency of animation teams to add more eye-dazzling complexity to each production. At one point, it was estimated that 190,000 individual drawings would be needed to complete the film in contrast to the 130,000 drawings needed to complete The Lion King. To meet Tarzan’s release date, workers were pulled off other productions and were often paid at overtime rates. The size of the film crew eventually reached 573, which was nearly twice the size of the crew that had made The Lion King. With animators earning salaries in the hundreds of thousands of dollars, the cost implications were staggering. Thomas S. Schumacher, Disney’s feature-animation chief,
