PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright © 2017 by McGraw-Hill Education. All rights reserved. Flexible Budgets and Performance Analysis Chapter 10 10-* Variance Analysis Cycle © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 10-* Learning Objective 1 Prepare a flexible budget. © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 10-* Characteristics of Flexible Budgets Planning budgets are prepared for a single, planned level of activity. Performance evaluation is difficult when actual activity differs from the planned level of activity. © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education Hmm! Comparing static planning budgets with actual costs is like comparing apples and oranges. © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 10-* Characteristics of Flexible Budgets © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education Improve performance evaluation. May be prepared for any activity level in the relevant range. Show costs that should have been incurred at the actual level of activity, enabling “apples to apples” cost comparisons. Help managers control costs. Let’s look at Larry’s Lawn Service. © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 10-* 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 on mowing 500 lawns. Since all of the lawns are similar in size, Larry felt that the number of lawns mowed in a month would be the best way to measure overall activity for his business. Deficiencies of the Static Planning Budget © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education Larry’s Budget © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 10-* Deficiencies of the Static Planning Budget Larry’s Planning Bud.

1. PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
Copyright © 2017 by McGraw-Hill Education. All rights
reserved.
Flexible Budgets and
Performance Analysis
Chapter 10
10-*
Variance Analysis Cycle
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Learning Objective 1

2. Prepare a flexible budget.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Characteristics of Flexible Budgets
Planning budgets
are prepared for
a single, planned
level of activity.
Performance evaluation is difficult when actual activity
differs from the planned level of activity.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Hmm! Comparing
static planning budgets

3. with actual costs
is like comparing
apples and oranges.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Characteristics of Flexible Budgets
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

4. Improve performance evaluation.
May be prepared for any activity
level in the relevant range.
Show costs that should have been
incurred at the actual level of
activity, enabling “apples to apples”
cost comparisons.
Help managers control costs.
Let’s look at Larry’s Lawn Service.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Larry’s Lawn Service provides lawn care in a planned

5. community where all lawns are approximately the same size.
At the end of May, Larry prepared his June budget based on
mowing 500 lawns. Since all of the lawns are similar in size,
Larry felt that the number of lawns mowed in a month would
be the best way to measure overall activity for his business.
Deficiencies of the Static Planning Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Larry’s Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Deficiencies of the Static Planning Budget
Larry’s Planning Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

6. Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostPlanningFormulasBudgetNumber of lawns
(Q)500Revenue($75Q)$ 37,500Expenses:Wages and
salaries($5,000 + $30Q)$ 20,000Gasoline and
supplies($9Q)4,500Equipment maintenance($3Q)1,500Office
and shop utilities($1,000)1,000Office and shop
rent($2,000)2,000Equipment
Depreciation($2,500)2,500Insurance($1,000)1,000Total
expenses32,500Net operating income$ 5,000
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P

7. Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Deficiencies of the Static Planning Budget
Larry’s Actual Results
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

8. Sheet1Larry's Lawn ServiceFor the Month Ended June
30ActualResultsNumber of lawns550Revenue$
43,000Expenses:Wages and salaries$ 23,500Gasoline and
supplies5,100Equipment maintenance1,300Office and shop
utilities950Office and shop rent2,000Equipment
Depreciation2,500Insurance1,200Total expenses36,550Net
operating income$ 6,450
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9

9. &A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Deficiencies of the Static Planning Budget
Larry’s Actual Results Compared with the Planning Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

10. Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostActualPlanningFormulasResultsBudgetVariance
sNumber of lawns (Q)550500Revenue($75Q)$ 43,000$
37,500$ 5,500FExpenses:Wages and salaries($5,000 + $30Q)$
23,500$ 20,000$ 3,500UGasoline and
supplies($9Q)5,1004,500600UEquipment
maintenance($3Q)1,3001,500200FOffice and shop
utilities($1,000)9501,00050FOffice and shop
rent($2,000)2,0002,000- 0Equipment
Depreciation($2,500)2,5002,500-
0Insurance($1,000)1,2001,000200UTotal
expenses36,55032,5004,050UNet operating income$ 6,450$
5,000$ 1,450F
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A

11. Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Deficiencies of the Static Planning Budget
Larry’s Actual Results Compared with the Planning Budget

12. F = Favorable variance that occurs when actual costs are less
than budgeted costs.
U = Unfavorable variance that occurs when actual costs are
greater than budgeted costs.
F = Favorable variance that occurs when actual revenue is
greater than budgeted revenue.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostActualPlanningFormulasResultsBudgetVariance
sNumber of lawns (Q)550500Revenue($75Q)$ 43,000$
37,500$ 5,500FExpenses:Wages and salaries($5,000 + $30Q)$
23,500$ 20,000$ 3,500UGasoline and
supplies($9Q)5,1004,500600UEquipment
maintenance($3Q)1,3001,500200FOffice and shop
utilities($1,000)9501,00050FOffice and shop
rent($2,000)2,0002,000- 0Equipment
Depreciation($2,500)2,5002,500-
0Insurance($1,000)1,2001,000200UTotal
expenses36,55032,5004,050UNet operating income$ 6,450$
5,000$ 1,450F
&A
Page &P
Sheet2

13. &A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14

14. &A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Deficiencies of the Static Planning Budget
Larry’s Actual Results Compared with the Planning Budget
Since these variances are unfavorable, has Larry done a poor
job controlling costs?
Since these variances are favorable, has Larry done a good job
controlling costs?
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostActualPlanningFormulasResultsBudgetVariance
sNumber of lawns (Q)550500Revenue($75Q)$ 43,000$

15. 37,500$ 5,500FExpenses:Wages and salaries($5,000 + $30Q)$
23,500$ 20,000$ 3,500UGasoline and
supplies($9Q)5,1004,500600UEquipment
maintenance($3Q)1,3001,500200FOffice and shop
utilities($1,000)9501,00050FOffice and shop
rent($2,000)2,0002,000- 0Equipment
Depreciation($2,500)2,5002,500-
0Insurance($1,000)1,2001,000200UTotal
expenses36,55032,5004,050UNet operating income$ 6,450$
5,000$ 1,450F
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P

16. Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Deficiencies of the Static Planning Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
I don’t think I
can answer the

17. questions using
a static budget.
Actual activity is above
planned activity.
So, shouldn’t the variable
costs be higher if actual
activity is higher?
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
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 must
the budget to the

18. actual level of activity.
Deficiencies of the Static Planning Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
34.unknown
10-*
How a Flexible Budget Works
To a budget, we need to know that:
Total variable costs change
in direct proportion to
changes in activity.
Total fixed costs remain
unchanged within the
relevant range.
Fixed
Variable
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of

19. McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
37.unknown
10-*
Let’s prepare a
budget
for Larry’s Lawn Service.
How a Flexible Budget Works
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
38.unknown
10-*

20. Preparing a Flexible Budget
Larry’s Flexible Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostFlexibleFormulasBudgetNumber of lawns
(Q)550Revenue($75Q)$ 41,250Expenses:Wages and
salaries($5,000 + $30Q)$ 21,500Gasoline and
supplies($9Q)4,950Equipment maintenance($3Q)1,650Office
and shop utilities($1,000)1,000Office and shop
rent($2,000)2,000Equipment
Depreciation($2,500)2,500Insurance($1,000)1,000Total
expenses34,600Net operating income$ 6,650
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A

21. Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P

22. 10-*
What should the total wages and salaries cost be in a
flexible budget for 600 lawns?
a. $18,000.
b. $20,000.
c. $23,000.
d. $25,000.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
What should be the total wages and salaries cost in a
flexible budget for 600 lawns?
a. $18,000
b. $20,000.
c. $23,000.
d. $25,000.
Total wages and salaries cost
wns)
$5,000 + $18,000 = $23,000
What should the total wages and salaries cost be in a
flexible budget for 600 lawns?
a. $18,000.

23. b. $20,000.
c. $23,000.
d. $25,000.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Learning Objective 2
Prepare a report showing activity variances.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Activity Variances
Flexible

24. budget revenues
and expenses
Planning
budget revenues
and expenses
The differences between the budget amounts are called activity
variances.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Let’s use budgeting concepts to compute activity
variances for Larry’s Lawn Service.
Activity Variances
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

25. 40.unknown
10-*
Activity Variances
Larry’s Flexible Budget Compared with the Planning Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostFlexiblePlanningActivityFormulasBudgetBudge
tVariancesNumber of lawns (Q)550500Revenue($75Q)$
41,250$ 37,500$ 3,750FExpenses:Wages and salaries($5,000
+ $30Q)$ 21,500$ 20,000$ 1,500UGasoline and
supplies($9Q)4,9504,500450UEquipment
maintenance($3Q)1,6501,500150UOffice and shop
utilities($1,000)1,0001,000- 0Office and shop
rent($2,000)2,0002,000- 0Equipment
Depreciation($2,500)2,5002,500-
0Insurance($1,000)1,0001,000- 0Total
expenses34,60032,5002,100UNet operating income$ 6,650$
5,000$ 1,650F
&A
Page &P
Sheet2
&A

26. Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A

27. Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Activity Variances
Larry’s Flexible Budget Compared with the Planning Budget
Activity and revenue increase by 10 percent, but net operating
income increases by more than 10 percent due to the presence of
fixed costs.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostFlexiblePlanningActivityFormulasBudgetBudge
tVariancesNumber of lawns (Q)550500Revenue($75Q)$
41,250$ 37,500$ 3,750FExpenses:Wages and salaries($5,000
+ $30Q)$ 21,500$ 20,000$ 1,500UGasoline and
supplies($9Q)4,9504,500450UEquipment
maintenance($3Q)1,6501,500150UOffice and shop
utilities($1,000)1,0001,000- 0Office and shop
rent($2,000)2,0002,000- 0Equipment

28. Depreciation($2,500)2,5002,500-
0Insurance($1,000)1,0001,000- 0Total
expenses34,60032,5002,100UNet operating income$ 6,650$
5,000$ 1,650F
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P

29. Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Learning Objective 3
Prepare a report showing revenue and spending variances.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Revenue and Spending Variances

30. Actual revenue
Flexible budget revenue
The difference is a revenue variance.
Actual cost
Flexible budget cost
The difference is a spending variance.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Now, let’s use budgeting concepts to compute revenue
and spending variances for Larry’s Lawn Service.
Revenue and Spending Variances
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
43.unknown

31. 10-*
Revenue and Spending Variances
Larry’s Flexible Budget Compared with the Actual Results
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
$1,750 favorable
revenue variance
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue
andRevenue/CostActualFlexibleSpendingFormulasResultsBudge
tVariancesNumber of lawns (Q)550550Revenue($75Q)$
43,000$ 41,250$ 1,750FExpenses:Wages and salaries($5,000
+ $30Q)$ 23,500$ 21,500$ 2,000UGasoline and
supplies($9Q)5,1004,950150UEquipment
maintenance($3Q)1,3001,650350FOffice and shop
utilities($1,000)9501,00050FOffice and shop
rent($2,000)2,0002,000- 0Equipment
Depreciation($2,500)2,5002,500-
0Insurance($1,000)1,2001,000200UTotal
expenses36,55034,6001,950UNet operating income$ 6,450$
6,650$ 200U

32. &A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13

33. &A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Larry’s Flexible Budget Compared with the Actual Results
Revenue and Spending Variances
Spending
variances
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue
andRevenue/CostActualFlexibleSpendingFormulasResultsBudge
tVariancesNumber of lawns (Q)550550Revenue($75Q)$

34. 43,000$ 41,250$ 1,750FExpenses:Wages and salaries($5,000
+ $30Q)$ 23,500$ 21,500$ 2,000UGasoline and
supplies($9Q)5,1004,950150UEquipment
maintenance($3Q)1,3001,650350FOffice and shop
utilities($1,000)9501,00050FOffice and shop
rent($2,000)2,0002,000- 0Equipment
Depreciation($2,500)2,5002,500-
0Insurance($1,000)1,2001,000200UTotal
expenses36,55034,6001,950UNet operating income$ 6,450$
6,650$ 200U
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P

35. Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Learning Objective 4
Prepare a performance report that combines activity variances
and revenue and spending variances.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

36. 10-*
Now, let’s use budgeting concepts to combine the
revenue and spending variances reports for Larry’s Lawn
Service.
A Performance Report Combining Activity and Revenue and
Spending Variances
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
46.unknown
10-*
A Performance Report Combining Activity and Revenue and
Spending Variances
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

37. Here we see a flexible budget performance report that shows
both activity variances and revenue and spending variances.
Note that the activity variances appear between the planning
budget and the flexible budget and that the revenue and
spending variances appear between the flexible budget and the
actual results.
Sheet1Larry's Lawn ServiceFlexible Budget Performance
ReportFor the Month Ended June 30Revenue
andRevenue/CostActualSpendingFlexibleActivityPlanningForm
ulasResultsVariancesBudgetVariancesBudgetNumber of lawns
(Q)550550500Revenue($75Q)$ 43,000$ 1,750F$ 41,250$
3,750F$ 37,500Expenses:Wages and salaries($5,000 + $30Q)$
23,500$ 2,000U$ 21,500$ 1,500U$ 20,000Gasoline and
supplies($9Q)5,100150U4,950450U4,500Equipment
maintenance($3Q)1,300350F1,650150U1,500Office and shop
utilities($1,000)95050F1,000- 01,000Office and shop
rent($2,000)2,000- 02,000- 02,000Equipment
Depreciation($2,500)2,500- 02,500-
02,500Insurance($1,000)1,200200U1,000- 01,000Total
expenses36,5502,100U34,6002,100U32,500Net operating
income$ 6,450$ 350U$ 6,650$ 1,650F$ 5,000
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5

38. &A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P

39. 10-*
A Performance Report Combining Activity and Revenue and
Spending Variances
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
50 lawns × $75 per lawn
50 lawns × $30 per lawn
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFlexible Budget Performance
ReportFor the Month Ended June 30Revenue
andRevenue/CostActualSpendingFlexibleActivityPlanningForm
ulasResultsVariancesBudgetVariancesBudgetNumber of lawns
(Q)550550500Revenue($75Q)$ 43,000$ 1,750F$ 41,250$
3,750F$ 37,500Expenses:Wages and salaries($5,000 + $30Q)$
23,500$ 2,000U$ 21,500$ 1,500U$ 20,000Gasoline and
supplies($9Q)5,100150U4,950450U4,500Equipment
maintenance($3Q)1,300350F1,650150U1,500Office and shop
utilities($1,000)95050F1,000- 01,000Office and shop
rent($2,000)2,000- 02,000- 02,000Equipment
Depreciation($2,500)2,500- 02,500-
02,500Insurance($1,000)1,200200U1,000- 01,000Total
expenses36,5502,100U34,6002,100U32,500Net operating
income$ 6,450$ 350U$ 6,650$ 1,650F$ 5,000
&A

40. Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A

41. Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
$43,000 actual - $41,250 budget
A Performance Report Combining Activity and Revenue and
Spending Variances
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFlexible Budget Performance
ReportFor the Month Ended June 30Revenue
andRevenue/CostActualSpendingFlexibleActivityPlanningForm
ulasResultsVariancesBudgetVariancesBudgetNumber of lawns
(Q)550550500Revenue($75Q)$ 43,000$ 1,750F$ 41,250$
3,750F$ 37,500Expenses:Wages and salaries($5,000 + $30Q)$
23,500$ 2,000U$ 21,500$ 1,500U$ 20,000Gasoline and
supplies($9Q)5,100150U4,950450U4,500Equipment

42. maintenance($3Q)1,300350F1,650150U1,500Office and shop
utilities($1,000)95050F1,000- 01,000Office and shop
rent($2,000)2,000- 02,000- 02,000Equipment
Depreciation($2,500)2,500- 02,500-
02,500Insurance($1,000)1,200200U1,000- 01,000Total
expenses36,5502,100U34,6002,100U32,500Net operating
income$ 6,450$ 350U$ 6,650$ 1,650F$ 5,000
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P

43. Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
Performance Reports in Non-Profit Organizations
Non-profit organizations may receive funding from sources
other than the sale of goods and services, so revenues may
consist of both fixed and variable elements.
Universities
Tuition and fees
Donations
State funding
Endowments
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of

44. McGraw-Hill Education
10-*
Performance Reports in Cost Centers
Performance reports are often prepared for cost centers. These
reports should be prepared using the same principles discussed
so far, except for the fact that these reports will not contain
revenue or net operating income variances.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Learning Objective 5
Prepare a flexible budget with more than one cost driver.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

45. Helen (H) - Slide 36
Changed the learning objective to match LO-5 as presented in
Habitat (Noreen 4e).
10-*
More than one cost
driver may be needed to
adequately explain all of
the costs in an organization.
The cost formulas used
to prepare a flexible
budget can be adjusted
to recognize multiple
cost drivers.
Flexible Budgets with Multiple Cost Drivers
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No

46. reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Because of the large unfavorable wages and salaries spending
variance, Larry decided to add an additional cost driver for
wages and salaries. The variance is due primarily to the number
of hours required for the additional edging and trimming. So
Larry estimates the additional hours and builds those hours into
both his revenue and expense budget formulas.
Flexible Budgets with Multiple Cost Drivers
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Larry’s New Budget
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Flexible Budgets with Multiple Cost Drivers
Larry’s Budget Based on More than One Cost Driver

47. © 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30Revenue/CostFlexibleFormulasBudgetNumber of lawns
(Q)550Numer of hours (H)100Revenues($75Q + $30H)$
44,250Expenses:Wages and salaries($5,000 + $30Q + $25H)$
24,000Gasoline and supplies($9Q)4,950Equipment
maintenance($3Q)1,650Office and shop
utilities($1,000)1,000Office and shop
rent($2,000)2,000Equipment
Depreciation($2,500)2,500Insurance($1,000)1,000Total
expenses37,100Net operating income$ 7,150
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6

48. &A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*

49. Learning Objective 6
Understand common errors made in preparing performance
reports based on budgets and actual results.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
10-*
Some Common Errors
The most common errors when preparing performance
reports are to implicitly assume that:
1. All costs are fixed, or that; All costs are variable.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Assume all costs are fixed.
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education

50. 10-*
Common Error 1: Assuming All Costs Are Fixed
Faulty Analysis Comparing Budgeted Amounts to Actual
Amounts
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30ActualPlanningResultsBudgetVariancesNumber of lawns
(Q)550500Revenue$ 43,000$ 37,500$
5,500FExpenses:Wages and salaries$ 23,500$ 20,000$
3,500UGasoline and supplies5,1004,500600UEquipment
maintenance1,3001,500200FOffice and shop
utilities9501,00050FOffice and shop rent2,0002,000-
0Equipment Depreciation2,5002,500-
0Insurance1,2001,000200UTotal
expenses36,55032,5004,050UNet operating income$ 6,450$
5,000$ 1,450F
&A
Page &P
Sheet2
&A
Page &P
Sheet3
&A
Page &P

51. Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A
Page &P
Sheet15
&A
Page &P

52. Sheet16
&A
Page &P
10-*
Common Error 2: Assuming All Costs Are Variable
Faulty Analysis that Assumes All Budget Items Are Variable
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Sheet1Larry's Lawn ServiceFor the Month Ended June
30PlanningActualPlanningBudgetResultsBudget×
110%VariancesNumber of lawns550500550Revenue$ 43,000$
37,500$ 41,250$ 1,750FExpenses:Wages and salaries$
23,500$ 20,000$ 22,000$ 1,500UGasoline and
supplies5,1004,5004,950150UEquipment
maintenance1,3001,5001,650350FOffice and shop
utilities9501,0001,100150FOffice and shop
rent2,0002,0002,200200FEquipment
Depreciation2,5002,5002,750250FInsurance1,2001,0001,100100
UTotal expenses36,55032,50035,750800UNet operating
income$ 6,450$ 5,000$ 5,500$ 950F
&A
Page &P
Sheet2
&A

53. Page &P
Sheet3
&A
Page &P
Sheet4
&A
Page &P
Sheet5
&A
Page &P
Sheet6
&A
Page &P
Sheet7
&A
Page &P
Sheet8
&A
Page &P
Sheet9
&A
Page &P
Sheet10
&A
Page &P
Sheet11
&A
Page &P
Sheet12
&A
Page &P
Sheet13
&A
Page &P
Sheet14
&A

54. Page &P
Sheet15
&A
Page &P
Sheet16
&A
Page &P
10-*
End of Chapter 10
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
© 2017 by McGraw-Hill Education. All rights reserved. No
reproduction or distribution without the prior written consent of
McGraw-Hill Education
Revenue/CostPlanning
FormulasBudget
Number of lawns (Q)500
Revenue($75Q)37,500$
Expenses:
Wages and salaries($5,000 + $30Q)20,000$
Gasoline and supplies($9Q)4,500
Equipment maintenance($3Q)1,500
Office and shop utilities($1,000)1,000
Office and shop rent($2,000)2,000
Equipment Depreciation($2,500)2,500
Insurance($1,000)1,000
Total expenses32,500
Net operating income5,000$

55. Larry's Lawn Service
For the Month Ended June 30
Actual
Results
Number of lawns 550
Revenue43,000$
Expenses:
Wages and salaries23,500$
Gasoline and supplies5,100
Equipment maintenance1,300
Office and shop utilities950
Office and shop rent2,000
Equipment Depreciation2,500
Insurance1,200
Total expenses36,550
Net operating income6,450$
Larry's Lawn Service
For the Month Ended June 30
Revenue/CostActualPlanning
FormulasResultsBudgetVariances
Number of lawns (Q)550 500
Revenue($75Q)43,000$ 37,500$ 5,500$ F
Expenses:
Wages and salaries($5,000 + $30Q)23,500$ 20,000$
3,500$ U
Gasoline and supplies($9Q)5,100 4,500 600
U
Equipment maintenance($3Q)1,300 1,500 200
F
Office and shop utilities($1,000)950 1,000 50
F
Office and shop rent($2,000)2,000 2,000 -
Equipment Depreciation($2,500)2,500 2,500 -
Insurance($1,000)1,200 1,000 200 U
Total expenses36,550 32,500 4,050 U
Net operating income6,450$ 5,000$ 1,450$ F

56. Larry's Lawn Service
For the Month Ended June 30
Revenue/Cost Flexible
FormulasBudget
Number of lawns (Q)550
Revenue($75Q)41,250$
Expenses:
Wages and salaries($5,000 + $30Q)21,500$
Gasoline and supplies($9Q)4,950
Equipment maintenance($3Q)1,650
Office and shop utilities($1,000)1,000
Office and shop rent($2,000)2,000
Equipment Depreciation($2,500)2,500
Insurance($1,000)1,000
Total expenses34,600
Net operating income6,650$
Larry's Lawn Service
For the Month Ended June 30
Revenue/Cost FlexiblePlanningActivity
FormulasBudgetBudgetVariances
Number of lawns (Q)550 500
Revenue($75Q)41,250$ 37,500$ 3,750$ F
Expenses:
Wages and salaries($5,000 + $30Q)21,500$ 20,000$
1,500$ U
Gasoline and supplies($9Q)4,950 4,500 450
U
Equipment maintenance($3Q)1,650 1,500 150
U
Office and shop utilities($1,000)1,000 1,000 -
Office and shop rent($2,000)2,000 2,000 -
Equipment Depreciation($2,500)2,500 2,500 -
Insurance($1,000)1,000 1,000 -
Total expenses34,600 32,500 2,100 U
Net operating income6,650$ 5,000$ 1,650$ F
Larry's Lawn Service

57. For the Month Ended June 30
Revenue/Cost FlexiblePlanningActivity
FormulasBudgetBudgetVariances
Number of lawns (Q)550 500
Revenue($75Q)41,250$ 37,500$ 3,750$ F
Expenses:
Wages and salaries($5,000 + $30Q)21,500$ 20,000$
1,500$ U
Gasoline and supplies($9Q)4,950 4,500 450
U
Equipment maintenance($3Q)1,650 1,500 150
U
Office and shop utilities($1,000)1,000 1,000 -
Office and shop rent($2,000)2,000 2,000 -
Equipment Depreciation($2,500)2,500 2,500 -
Insurance($1,000)1,000 1,000 -
Total expenses34,600 32,500 2,100 U
Net operating income6,650$ 5,000$ 1,650$ F
Larry's Lawn Service
For the Month Ended June 30
Revenue and
Revenue/CostActualFlexibleSpending
FormulasResultsBudgetVariances
Number of lawns (Q)550 550
Revenue($75Q)43,000$ 41,250$ 1,750$ F
Expenses:
Wages and salaries($5,000 + $30Q)23,500$ 21,500$
2,000$ U
Gasoline and supplies($9Q)5,100 4,950 150
U
Equipment maintenance($3Q)1,300 1,650 350
F
Office and shop utilities($1,000)950 1,000 50
F
Office and shop rent($2,000)2,000 2,000 -
Equipment Depreciation($2,500)2,500 2,500 -

58. Insurance($1,000)1,200 1,000 200 U
Total expenses36,550 34,600 1,950 U
Net operating income6,450$ 6,650$ 200$ U
Larry's Lawn Service
For the Month Ended June 30
Revenue and
Revenue/Cost ActualSpendingFlexibleActivityPlanning
FormulasResultsVariancesBudgetVariancesBudget
Number of lawns (Q)550 550 500
Revenue($75Q)43,000$ 1,750$ F41,250$ 3,750$
F37,500$
Expenses:
Wages and salaries($5,000 + $30Q)23,500$ 2,000$
U21,500$ 1,500$ U20,000$
Gasoline and supplies($9Q)5,100 150 U4,950
450 U4,500
Equipment maintenance($3Q)1,300 350 F1,650
150 U1,500
Office and shop utilities($1,000)950 50
F1,000 - 1,000
Office and shop rent($2,000)2,000 - 2,000
- 2,000
Equipment Depreciation($2,500)2,500 - 2,500
- 2,500
Insurance($1,000)1,200 200 U1,000 -
1,000
Total expenses36,550 2,100 U34,600 2,100
U32,500
Net operating income6,450$ 350$ U6,650$
1,650$ F5,000$
Larry's Lawn Service
For the Month Ended June 30
Flexible Budget Performance Report
Revenue/Cost Flexible
FormulasBudget
Number of lawns (Q)550

59. Numer of hours (H)100
Revenues($75Q + $30H)44,250$
Expenses:
Wages and salaries($5,000 + $30Q + $25H)24,000$
Gasoline and supplies($9Q)4,950
Equipment maintenance($3Q)1,650
Office and shop utilities($1,000)1,000
Office and shop rent($2,000)2,000
Equipment Depreciation($2,500)2,500
Insurance($1,000)1,000
Total expenses37,100
Net operating income7,150$
Larry's Lawn Service
For the Month Ended June 30
ActualPlanning
ResultsBudgetVariances
Number of lawns (Q)550 500
Revenue43,000$ 37,500$ 5,500$ F
Expenses:
Wages and salaries23,500$ 20,000$ 3,500$ U
Gasoline and supplies5,100 4,500 600 U
Equipment maintenance1,300 1,500 200 F
Office and shop utilities950 1,000 50 F
Office and shop rent2,000 2,000 -
Equipment Depreciation2,500 2,500 -
Insurance1,200 1,000 200 U
Total expenses36,550 32,500 4,050 U
Net operating income6,450$ 5,000$ 1,450$ F
Larry's Lawn Service
For the Month Ended June 30
Planning
ActualPlanningBudget
ResultsBudget× 110%Variances
Number of lawns 550 500 550
Revenue43,000$ 37,500$ 41,250$ 1,750$ F
Expenses:

60. Wages and salaries23,500$ 20,000$ 22,000$ 1,500$
U
Gasoline and supplies5,100 4,500 4,950 150
U
Equipment maintenance1,300 1,500 1,650 350
F
Office and shop utilities950 1,000 1,100 150
F
Office and shop rent2,000 2,000 2,200 200
F
Equipment Depreciation2,500 2,500 2,750 250
F
Insurance1,200 1,000 1,100 100 U
Total expenses36,550 32,500 35,750 800 U
Net operating income6,450$ 5,000$ 5,500$ 950$
F
Larry's Lawn Service
For the Month Ended June 30
Module 1 - Background
Review of the Research Process and Research Designs
Harwell, M. (2011). Research design in
qualitative/quantitative/mixed methods. In C. Conrad, & R.
Serlin (Eds.), The SAGE handbook for research in education:
Pursuing ideas as the keystone of exemplary inquiry. (2nd ed.,
pp. 147–165). Thousand Oaks, CA: SAGE Publications, Inc.
General Considerations of Research Design (2002). In Delbert
C. Miller, & Neil J. Salkind (Eds.), Handbook of Research
Design & Social Measurement. (6th ed., pp. 50–51). Thousand
Oaks, CA: SAGE Publications, Inc.
Darius, P., & Portier, K. (1999). 5: Experimental Design. In
Herman J Adèr, & Gideon J Mellenbergh (Eds.), Research
Methodology in the Social, Behavioural and Life Sciences. (pp.
67–96). London, England: SAGE Publications, Ltd.
Horner, R., & Spaulding, S. (2010). Single-Subject Design. In
Neil J. Salkind (Ed.), Encyclopedia of Research Design. (pp.

61. 1387–1395). Thousand Oaks, CA: SAGE Publications, Inc.
Rutter, M. (2007). Proceeding From Observed Correlation to
Causal Inference: The Use of Natural Experiments. In W. Paul
Vogt (Ed.), SAGE Quantitative Research Methods. (Vol. 2, pp.
377–416). Thousand Oaks, CA: SAGE Publications, Inc.
Mrug, S. (2010). Survey. In Neil J. Salkind (Ed.), Encyclopedia
of Research Design. (pp. 1473–1477). Thousand Oaks, CA:
SAGE Publications, Inc.
Clandinin, D. J. (Ed.). (2007). Handbook of Narrative Inquiry:
Mapping a Methodology. Thousand Oaks, CA: SAGE
Publications, Inc.
Angrosino, M. (Ed.). (2007). Doing Ethnographic and
Observational Research. London, United Kingdom: SAGE
Publications Ltd.
Bryant, A., & Charmaz, K. (Eds.). (2007). The SAGE Handbook
of Grounded Theory. London, England: SAGE Publications Ltd.
Travers, M. (Ed.). (2001). Qualitative Research through Case
Studies. London, England: SAGE Publications Ltd.
Maxwell, J. (2009). Designing a qualitative study. In L.
Bickman, & D. Rog (Eds.), The SAGE handbook of applied
social research methods. (2nd ed., pp. 214–254). Thousand
Oaks, CA: SAGE Publications, Inc.
Privacy Policy | Contact
Module 1 - Case
Review of the Research Process and Research Designs
Case Assignment
Locate two articles from peer reviewed journals (hint: work
efficiently, locate articles that are relevant to a potential topic
for your TAD). One article should utilize quantitative methods
and the other article should utilize qualitative methods. Read
each article carefully. In a 3- to 5-page paper, address the

62. following for each article:
· Identify the research design.
· Provide a summary and evaluation of the data collection
procedures.
· Provide a summary and evaluation of the data analysis
procedures.
· Provide a summary of the differences you observe in the
report of the findings between the two articles (pay attention to
what information is included and how it is presented).
· Discuss how these articles add to your knowledge about the
topic, research problem, or research process you are exploring
for the TAD.
Assignment Expectations
Your paper will be assessed on the following criteria:
Assignment-driven criteria: Demonstrates mastery covering all
key elements of the assignment in a substantive way.
Scholarly writing: Demonstrates mastery and proficiency in
scholarly written communication to an appropriately specialized
audience.
Quality of references and organization: Demonstrates mastery
using relevant and quality sources and uses appropriate,
relevant, and compelling content to support ideas, convey
understanding of the topic, and shape the work.
Citing sources: Demonstrates mastery using in-text citations or
sources and properly uses APA format including a full reference
list.
Critical thinking/Application to professional practice:
Demonstrates mastery conceptualizing the problem, and
viewpoints and assumptions of experts are analyzed,
synthesized, and evaluated thoroughly. Conclusions are
logically presented and applied to professional practice in an
exceptional manner.
Privacy Policy | Contact
Sample post

63. Chapter 5 DB Topic #4 - Donna Zuiderweg
Lean manufacturing is the step-by-step process of minimizing or
eliminating all unnecessary steps, time, and materials used in
the production of a unit of product. The process can have many
positive affects including decreased labor and product costs and
increased capacity. It also results in decreased inventories since
a company begins to produce only enough units to meet
demand. This, in turn, means fewer units are warehoused and
fewer units are carried over from month to month or year to
year.
Since there are fewer units stored in inventory; there are fewer
units that need to be tracked on the company’s income
statement. Since the net operating income in variable costing
doesn’t acknowledge the fixed manufacturing costs associated
with inventories and the fixed manufacturing costs associated
with inventories in absorption costing decreases as inventories
decrease, then the difference between the results of the two
income statements becomes much less. Basically, the fewer
inventories, the closer the results of variable costing and
absorption costing are when computing net operating income
(loss).
While I’ve never worked for a company that produced a
product, we did go through a lean process improvement in a
marketing department at a nonprofit organization where I
worked. The nonprofit produced and printed a lot of printed
pieces used throughout its 21 locations. The goal was to reduce
the printing costs, wasted overage and storage necessity for all
of the printed materials. The lean system was a remarkable
success; however, the biggest drawback was that it was harder
(if not impossible) to react to a spike in demand. There were no
inventories to fall back on. If the organization ran out of a
particular brochure, then there was a minimum of 24 hour
turnaround before a new brochure could be printed and supplied
to the location. A company with little to no inventory to

64. insulate it from a spike in demand runs the risk of losing sales
or make customers unhappy.
Discussion post –wk 6
Chapter 10 DB Topic #4 (4 original replies only)
What are some of the possible reasons that actual results may
differ from what had been budgeted at the beginning of the
period? Give at least one example for a company and one
example for a personal budget.