Chapter 14 - Cost analysis for planning and control. After completing this unit, you should be able to: Use cost terminology that relates to the budgeting process, all costs are controllable at some time but in the short-run some costs are uncontrollable, understand the budgeting process, develop a sales, purchases and production budget,. | CHAPTER 14 Cost Analysis for Planning and Control 14- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Use cost terminology that relates to the budgeting process. All costs are controllable at some time but in the short-run some costs are uncontrollable. Understand the budgeting process. Develop a sales, purchases and production budget. Discuss the importance of cost behaviour patterns. Explain how a budgeted income statement and balance sheet are prepared. Develop a cash budget. Interpret the reporting for segments of an organisation. Use return on assets and residual profit to evaluate performance. Explain the usefulness of a balanced scorecard. 14- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Overview Planning is an essential part of the management process and it represents the initial activity in the planning and control cycle. A budget quantifies future financial plans. Budgeting involves the use of financial accounting concepts and also management accounting techniques. Performance reporting involves the comparison of actual results with planned results. Corrective action can be taken to deal with variances from planned results. The budget process requires communication and coordination of activities between the different functional areas of the firm. 14- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Control Steps taken by management to ensure that objectives are attained. Planning Developing objectives for acquisition and use of resources. A budget is a comprehensive financial plan for achieving the financial and operational goals of an organisation. Budgeting 14- Copyright 2007 . | CHAPTER 14 Cost Analysis for Planning and Control 14- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Learning Objectives Use cost terminology that relates to the budgeting process. All costs are controllable at some time but in the short-run some costs are uncontrollable. Understand the budgeting process. Develop a sales, purchases and production budget. Discuss the importance of cost behaviour patterns. Explain how a budgeted income statement and balance sheet are prepared. Develop a cash budget. Interpret the reporting for segments of an organisation. Use return on assets and residual profit to evaluate performance. Explain the usefulness of a balanced scorecard. 14- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Overview Planning is an essential part
