管理会计Introduction to Managerial Accounting英文教学PPT Chapter_08.pptx

Flexible Budgets, Standard Costs, andVariance Analysis;Variance Analysis Cycle;Learning Objective 8-1;Characteristics of Flexible Budgets;;Larry’s Lawn Service provides lawn care in a planned community where all lawns are approximately the same size.At the end of May, Larry prepared his June budget based onmowing 500 lawns. Since all of the lawns are similar in size,Larry felt that the number of lawns mowed in a month wouldbe the best way to measure overall activity for his business.;Deficiencies of the Static Planning Budget;Deficiencies of the Static Planning Budget;Deficiencies of the Static Planning Budget;Deficiencies of the Static Planning Budget;Deficiencies of the Static Planning Budget;;The relevant question is . . . “How much of the cost variances are due to higher activity and how much are due to cost control?” To answer the question,we mustthe budget to theactual level of activity. ;How a Flexible Budget Works;Let’s prepare a budgetfor Larry’s Lawn Service.;Preparing a Flexible Budget;Quick Check ?;Quick Check ?;Learning Objective 8-2;Revenue and Spending Variances;Let’s use budgeting concepts to compute revenue and spending variances for Larry’s Lawn Service. ;Revenue and Spending Variances;Larry’s Flexible Budget Compared with the Actual Results;Learning Objective 8-3;More than one cost driver may be needed toadequately explain all ofthe costs in an organization. ;Because the time required for edging and trimming is different for different lawns, Larry decided to add an additional cost driver (hours) for the additional time required for edging and trimming. ;Flexible Budgets with Multiple Cost Drivers;Standard Costs;Setting Direct Materials Standards ;Setting Direct Labor Standards ;Setting Variable Manufacturing Overhead Standards ;The Standard Cost Card;Using Standards in Flexible Budgets;A General Model for Variance Analysis;Different managers are usually responsible for buying and using inputs. For e