NAMA: FITRI YANI NPM: 1642052

1. MANAGEMENT ACCOUNTING-II
Our lecturer :
Santi Yopie, SE., MM., CMA., Project+., CIBA.,
CPA., BKP.

2. ACCOUNTING MANAGEMENT
HOMEWORK

3. 1.Budget and how it used in planning
• an estimate of income and expenditure for a set period
of time
• A budget helps in planning actual operations by forcing
managers to consider how the conditions might change
and what steps should be taken now, and by
encouraging managers to consider problems before
they arise. It also helps to co-ordinate the activities of
the organization by compelling managers to examine
relationships between their own operation and those
of other departments.

4. 2.Control and how budget used to
control
• budget is a financial plan for a defined period
of time, usually a year.
• A budget is the sum of money allocated for a
particular purpose and the summary of
intended expenditures along with proposals
for how to meet them. It may include a
budget surplus, providing money for use at a
future time, or a deficit in which expenses
exceed income.

5. 3.Reason for budgeting
• Budgeting provides a strong incentive for
business managers to develop financial
models that help them make strategic
decisions, exercise control, and do better
planning

6. 4.Master Budget, Operation
Budget,Financial Budget.
• The master budget is a one-year budget planning
document for the firm encompassing all other
budgets
• The operating budget shows the income-
generating activities of the firm,
including revenues and expenses. The result is a
budgeted income statement.
• The financial budget shows the inflows and
outflows of cash and other elements of the firm's
financial position. The inflows and outflows of
cash come from the cash budget.

7. 5.The role of sales forecast and the difference
between sales forecast and sales budget
• Sales forecast, is defined as a projection into
the future of expected demand, given a stated
set of environmental conditions.
• Sales budget, is defined as a set of specified
managerial actions to be undertaken to meet
or exceed the sales forecast. Examples of
plans include production plans, procurement
plans, distribution plans, and financial plans

8. 6.Is all budget depend on sales
budget ?
because all of the other business budgets are
based on this one sales budget document.
Without the sales budget, you cannot forecast
anything else that will go on your business. You
do not know how much you should spend on
advertising, how much you should spend on
production or any other component of your
business. While you know your fixed expenses
like rent and utilities, the rest of the expenses will
largely depend on how much you sell.

9. 7.
Yes. Al, budgets are founded on the sales
budget. Before a production budget can be
created, it must have the planned sales. The
manufacturing budgets, in turn, depend on the
production budget. The same is true for the
financial budgets since sales is a critical input for
budgets in that category.

10. 8.
For a merchandising firm, the production budget
is replaced by a merchandise purchases budget.
Merchandising firms also lack direct materials
and direct labor budgets. All other budgets are
essentially the same. For a service firm (for
profit), the sales budget doubles as the
production budget, and there is no finished
goods inventory budget. The rest of the budgets
have counterparts.

11. 9.
A static budget is for a particular level of activity.
A flexible budget is one that can be established
for any level of activity. For performance
reporting, it is necessary to compare the actual
costs for the actual level of activity with the
budgeted costs for the actual level of activity,
after the fact.

12. 10.
A flexible budget is based on a simple formula: Y
= F + VX, which requires knowledge of both fixed
and variable components.

13. 11. Discuss the shortcoming of
traditional budget
Shortcoming:
1. Inefficiency – wasted of time and resources
2. Disconnect from strategic plan - focused on
cost reduction rather than value creation
3. Based on assumption, not 100% correct.

14. No. 11
If you want to plan ahead, this master
budget might be a good choice since from this
master budget you can see how much or how
many a department spent in a period of time,
you can also easily know do they actually
over-spent or not.

15. 12.
Frequent feedback is important so that
corrective action can be taken, increasing the
likelihood of achieving budget.

16. 13. What are the two meaning of
flexible budget ?
The budget that provides expected costs for a
range of activity.
- Example: A company is going to have a
occasion to celebrate company’s anniversary.
So you need the budget to know the expenses
for this activity. Using actual cost.

17. No. 13
Provides budgeted costs for the actual level of
activity.
- Example: A company is going to have a
occasion to celebrate company’s anniversary.
So you need the budget to know the expenses
for this activity. Using expected / cost that you
wanted it to be.

18. 14.
Participative budgeting is a system of budgeting
that allows subordinate managers a say in how
the budgets are established. Participative
budgeting fosters creativity and communicates a
sense of responsibility to subordinate managers.
It also creates a higher likelihood of goal
congruence since managers have more of a
tendency to make the budge’s goals their own
personal goals.