Larry M. Walther; Christopher J. Skousen Budgeting and Decision Making Download free books at Download free eBooks at bookboon.com 2 Budgeting and Decision Making © 2009 Larry M. Walther, under nonexclusive license to Christopher J. Skousen & Ventus Publishing ApS. All material in this publication is copyrighted, and the exclusive property of Larry M. Walther or his licensors (all rights reserved). ISBN 978-87-7681-492-2 Download free eBooks at bookboon.com Click on the ad to read more Budgeting and Decision Making 3 Contents 9 10 10 10 11 12 14 14 14 15 16 16 16 17 17 17 18 19 20 21 23 24 26 Contents Part 1. Budgeting: Planning for Success 1. Importance of Budgets 1.1 Forms and Functions 1.2 Avoiding Business Chaos 1.3 An Electrifying Case in Budgeting   2. Budget Processes and Human Behavior 2.1 Budget Construction 2.2 Mandated Budgets 2.3 Participative Budgets 2.4 Blended Approach 2.5 Organizational Structure Considerations 2.6 Flattening the Organization Chart 2.7 Budget Estimation 2.8 Slack and Padding 2.9 Zero-Based Budgeting 2.10 The Impossible Budget and Employee Capitulation 2.11 Ethical Challenges in Budgeting 3. Components of the Budget 3.1 Sales Budget 3.2 Production Budget 3.3 Direct Material Purchases Budget 3.4 Direct Labor Budget www.sylvania.com We do not reinvent the wheel we reinvent light. Fascinating lighting offers an infinite spectrum of possibilities: Innovative technologies and new markets provide both opportunities and challenges. An environment in which your expertise is in high demand. Enjoy the supportive working atmosphere within our global group and benefit from international career paths. Implement sustainable ideas in close cooperation with other specialists and contribute to influencing our future. Come and join us in reinventing light every day. Light is OSRAM Download free eBooks at bookboon.com Click on the ad to read more Budgeting and Decision Making 4 Contents 3.5 Factory Overhead Budget 3.6 Selling and Administrative Expense Budget 3.7 Cash Budget 3.8 Budgeted Income Statement and Balance Sheet 3.9 External Use Documents 3.10 Performance Appraisal 4. Budget Periods and Adjustments 4.1 Continuous Budgets 4.2 Flexible Budgets 4.3 Encumbrances Part 2. Tools for Enterprise Performance Evaluation 5. Responsibility Accounting and Management by Exception 5.1 Centralized Versus Decentralized Decision-Making 5.2 Responsibility Centers 5.3 Cost Center   5.5 Investment Center   5.7 Responsibility Center Reports 5.8 The Power of a Data Base System 5.9 Traceable Versus Common Fixed Costs 5.10 Management by Expansion 26 28 29 31 31 33 34 34 34 35 36 37 37 38 38 39 39 40 41 44 44 45 360° thinking . © Deloitte & Touche LLP and affiliated entities. Discover the truth at www.deloitte.ca/careers