4. Keuntungan menggunakan Budgeting
Sistem Budgeting memberi beberapa
keuntungan bagi perusahaan :
1. Untuk perencanaan
2. Sumber informasi dalam pengambilan
keputusan
3. Menjadi standar evaluasi
4. Meningkatkan komunkasi dan koordinasi
5. MASTER BUDGET
Master Budget: comprehensive financial plan
for the organization as a whole
Jangka waktu 1 tahun
Master budget 1 tahun– dibreakdown :
Triwulan dan bulanan.
Beberapa perusahaan menggunakan
Continuous budgeting philosophy (moving 12
months budget.
7. MASTER BUDGET.......
Penyiapan master budget : 4-5 bln terakhir
Komite anggaran mereview budget,
menyiapkan kebijakan,meng-approve budget
final dan memonitor kinerja organisasi.
Budget director, orang yang
bertanggungjawab mengarahkan dan
mengkoordinasikan keseluruhan proses
budgeting secara keeluruhan.
8. MAJOR COMPONENTS OF MASTER BUDGET
Master Budget
Operating Budget:
Income generating
activities
Financial Budget:
inflows n outflows
cash and overall
financial position
9. OPERATING BUDGET
Budget Operasi terdiri dari :
sales budget
production budget
direct materials purchases budget
direct labor budget
overhead budget
selling and administrative expenses budget
ending finished goods inventory budget
cost of goods sold budget
10. SALES BUDGET
Sales Budget: Berisi ekspektasi Penjualan dalam
unit dan Rupiah/dollar.
Merupakan budget utama dalam budget operasi –
Harus seakurat mungkin.
Langkah pertama membuat sales budget adalah
membuat sales Forecast.
Sales Forecast merupakan estimasi awal, biasanya
dibuat oleh budget comitee dengan adjustment.
12. BUDGET PRODUKSI
Berisi jumlah unit yang harus diproduksi untuk
memenuhi penjualan dan ending inventory.
Menghitung unit produksi (Data unit sales ,
beginning dan Ending Inventory diperlukan) :
Units to be produced = Expected unit sales +
Units in desired ending inventory (EI) – Units in
beginning inventory (BI)
15. DIRECT MATERIALS PURCHASES
BUDGET
Budget untuk DM, DL dan overhead bisa dibuat
setelah budget produksi selesai dibuat..
Direct materials purchases budget berisi jumlah
bahan mentah dan cost nya yang harus dibeli
setiap periode..
Cara menghitung:
19. DIRECT LABOR BUDGET
Direct labor budget menunjukkan total jam
kerja dan cost nya yang dibutuhkan untuk
memproduksi unit dalam budget produksi.
Penentuan jam kerja berdasarkan jumlah
jam kerja untuk memproduksi output (unit
produksi)
21. OVERHEAD BUDGET
Budget Overhead menunjukkan ekspektasi
biaya produksi selain DM dan DL.
Jam tenaga kerja langsung sering digunakan
sebagai driver overhead.
Cost Then costs that vary with direct labor hours
are pooled and called variable overhead.
The remaining overhead items are pooled into
fixed overhead.
22. CORNERSTONE 9-5
PREPARING AN OVERHEAD BUDGET
Information:
Refer to the direct labor budget below. The variable overhead rate is $5
per direct labor hour. Fixed overhead is budgeted at $1,645 per quarter
(this amount includes $540 per quarter for depreciation).
Required:
Prepare an overhead budget.
24. ENDING FINISHED GOODS INVENTORY
BUDGET
Ending finished goods inventory budget
menyediakan iformasi yang diperlukan dalam
pembuatan neraca dan merupakan input dalam
penyiapan budget Cost of gods Sold.
Sebelum membuat budget ini,, harus dihitung
Cost product per unit berddasarkan data pada
DM, DL dan Overhead budget.
27. COST OF GOODS SOLD BUDGET
Diasumsikan nilai beginning Finish
Goods inventory senilai $ 1,251,
Budget COGS dapat kita ilustrasikan
dengan informasi Cornerstones 9-3
s.d 9-6.
Cost of goods sold budget
mengungkapkan Cost product yang
diekspektasikan terjual.
29. SELLING AND ADMINISTRATIVE
EXPENSES BUDGET
Selling and administrative expenses budget
berisi pengeluaran yag bukan untuk proses
produksi.
Biaya selling and administrative bisa
diklasifikasikan ke dalam komponen variabel
dan fixed.
Contoh biaya: komisi penjualan, biaya angkut.
30. Cornerstone 9-8
Preparing a Selling and Administrative
Expenses Budget
Information:
Refer to the sales budget below. Variable expenses are $0.10 per unit sold. Salaries
average $1,420 per quarter; utilities, $50 per quarter; and depreciation, $150 per
quarter. Advertising for Quarters 1 through 4 is $100, $200, $800, and $500,
respectively.
Required:
Prepare a selling and administrative expenses budget.
32. BUDGETED INCOME STATEMENT
Setelah Operating budget selesai dibuat,
perusahaan perlu mempersiapkan dan
menghitung estimasi operating income
Budgeted Income Statement).
33. Cornerstone 9-9
Preparing a Budgeted Income Statement
Information:
Refer to Cornerstones 9-1, 9-7, 9-8, and 9-12 for the sales budget, the cost of
goods sold budget, the selling and administrative expenses budget, and the cash
budget. Assume that the tax rate is 40 percent.
Required:
Prepare a budgeted income statement.
34. PREPARING THE FINANCIAL BUDGET
Financial budget terdiri dari:
cash budget
budgeted balance sheet
budget for capital expenditures
35. CASH BUDGET
Aliran kas adalah titik kritis dalam mengelola bisnis.
Bisnis sukses berproduksi dan menjual produk tetapi “gagal”
karena masalah timing terkait kas masuk dan kas keluar.
Aliran kas sangat penting bagi perusahaan, karena itu budget
kas sangat penting dalam master budget
Struktur dasar budget kas: penerimaan kas, disbursment,
kelebihan atau kekurangan kas.
36. CASH BUDGET: CASH AVAILABLE
Cash available ( kas tersedia) terdiri dari saldo awal kas
ditambah kas yag diekspektasikan diterima. Kas yang
diekspektasikan diterima berasal dari semua sumber
kas pada periode bersangkutan.
Sumber kas utama dari penjualan .
Proporsi Penjualan terbesar adalah secara kredit,
orgnisasi harus menentukan pattern (pola) dari
penagihan piutang.
Untuk perusahaan yang sudah lama, penentuan pattern
of collection piutang untuk bulan berjalan dan bulan-
bulan selanjutnya biasanya menggunakan pengalaman
sebelumnya.
Pattern ini nantinya digunakan untuk membuat jadwal
pengumpulan/penagihan piutang.
37. CORNERSTONE 9-10
PREPARING A SCHEDULE FOR CASH COLLECTIONS
ON ACCOUNTS RECEIVABLE
3
Information:
From past experience, Texas Rex expects that, on average, 25 percent of total sales
are cash and 75 percent of total sales are on credit. Of the credit sales, Texas Rex
expects that 90 percent will be paid in cash during the quarter of sale, and the
remaining 10 percent will be paid in the following quarter. Recall from Cornerstone
9-1 that Texas Rex expects the following total sales:
Quarter 1 $10,000
Quarter 2 $12,000
Quarter 3 $15,000
Quarter 4 $20,000
The balance in accounts receivable as of the last quarter of 2011 was $1,350. This
will be collected in cash during the first quarter of 2012.
Required:
1. Calculate cash sales expected in each quarter of 2012.
2. Prepare a schedule showing cash receipts from sales expected in each quarter of
2012.
39. CASH BUDGET:
CASH DISBURSEMENTS
Berisi semua rencana pengeluaran kas.
Biaya-biaya yang tidak memerlukan cash tidak
termasuk dalam kategori ini. (ex Depresiasi). All
expenses that do not require a cash outlay are excluded
from the list (e.g., depreciation is never included in the
disbursements section).
Perlu juga dibuatkan schedule pembayaran hutang.
42. CASH BUDGET:
CASH EXCESS OR DEFICIENCY
Budget kas oleh beberapa perusahaan dikembangkan lagi
dengan menambahkan bagian untuk menampilkn
peminjaman atau pembayaran yang dibutuhkan untuk
mencapau kas minimum yang diinginkan.
Hasil akhir buget ini menunjukkan kelebihan kas atau
kekurangan kas.
Kelebihan atau kekuranngan kas ini akan dibandingkan
dengan saldo kas minimum (jumlah minimum kas yang
ditentukan dengan kebijakan perusahaan.)
Kekurangan kas – Perusahaan akan melakukan pinjaman
jangka pendek.
Kelebihan Kas -- Perusahaan akan melakukan pembayaran
pinjaman jika ada( termasuk bunga).
43. CASH BUDGET: BORROWINGS AND
REPAYMENTS, ENDING CASH BALANCE
Saldo kas akhir: Dapat dilihat pada bagian paling akhir
budget kas . Merupakan kas ditangan yang
direncanakan pada akhir periode .
46. BUDGETED BALANCE SHEET
Informasi yang ada pada budgeted
balance sheet tergantung dari data yang
ada pada neraca saat ini dan budget lain
dalam master budet.
Explanations for the budgeted figures are
typically provided in the footnotes.
47. USING BUDGETS FOR PERFORMANCE
EVALUATION
Budget digunakan untuk menilai kinerja manajer.
Gaji, Bonus dan promosi dipengaruhi oleh kemampuan
manajer untuk mencapai target budget.
Positive behavior terjadi ketika tujuan tiap manajer
sejalan dengan tujuan organisasi dan setiap manajer.
Keserasian tujuan manajer dengan perusahaan dikenal
dengan istilah :goal congruence.
Dysfunctional behavior : perilaku idividu yang
menyimpang dari tujuan perusahaan.
48. POSITIVE BEHAVIOR
Faktor kunci yang menunjang perilaku positif
dari budget:
Feedback kinerja yang dilakukan secara sering
Insentif moneter dan non mooneter
participative budgeting
Standar yang realistis
Kos yang bisa dikendalikan
Pengukuran yang beragam atas kinerja
49. FREQUENT FEEDBACK ON
PERFORMANCE
Manajer perlu tahu bagaimana
perkembangan kinerja mereka.
Laporan kinerja yang sering dilakukan
akan memberi informasi bagi para
manajer untuk tahu sejauh mana
achievement mereka, dan untuk
mengambil tindakan kkoreksi atau
mengubah strategi merekan jika
diperlukan untuk bisa mencapai target
50. MONETARY AND NONMONETARY
INCENTIVES
Insentif dimaksudkan untuk mempengaruhi manajer agar
berusaha mencapai tujuan organisasi.
Teori organisasi tradisional mengasumsikn bahwa karyawam
umumnya termotivasi oleh hadiah moneter, menolak work,
dan tidak efisien.
Monetary incentives digunakan untuk mengontrol
kecenderungan manajer untuk melalaikan dan membuang
buang sumber daya, menerapkan keterkaitan antara
kinerja dengan kenaikan gaji, bonus dan promosi.
Nonmonetary incentives, including job enrichment,
increased responsibility and autonomy, and recognition
programs can be used to enhance a budgetary control
system.
51. PARTICIPATIVE BUDGETING
Daripada memaksanakan budget kepada manajer
dibawah,, lebih baik manajer dibawah membuat budget
sendiri untuk kemudian disatukan.
Meningkatkan tanggungjawab dan tantangan tersendiri
yang akan meningkatkan kinerja (nonmonetary
incentive).
Partisipasi manajer sub-ordinate dalam pembuatan
budget memiliki resiko:
Menyetel standar terlalu longgar atau terlalu tinggi.
Kesenjangan budget
Partisipasi semu
52. STANDARD SETTING
Standar terlalu rendah atau terlalu tinggi.
Salah menentukan standar akan menyebabkan
penurunan kinerja.
Standar yang baik = high but achievable.
54. PSEUDOPARTICIPATION
Top manajemen mengasumsikan Total
Control of budgeting process hanya pada
manajer level bawah yang superficial.
Praktek Ini disebut partisipasi semu
Top management dengan mudah
menerima budget dari manajer leverl
bawah, tanpa melihat input aktualnya.
55. REALISTIC STANDARDS
Busget harus mencerinkan operasi aktual:
Level aktivitas aktual: Anggaran flexible digunakan untuk
memastikan bahwa budget bisa dibandingkan dengan level
aktivitas aktual.
Seasonal Variations: Interim budgets harus mencerminkan efek
dari musim-musim tertetu (Seasonal). Contoh perusahaan
mainan pada musim natal akan meningkat salesnya.
Efisiensi: Budgetary cuts should be based on planned
increases in efficiency and not simply arbitrary across-the-board
reductions. Across-the-board cuts without any formal evaluation
may impair the ability of some units to carry out their missions.
General Economic Trends: Kondisi umum perekonomian harus
dipertimbangkan.
56. CONTROLLABILITY OF COSTS
Secara ideal, manajer hanya bertanggungjawab
atas kos yang bisa mereka kkontrol.
Controllable costs adalah level kos yang bisa
dipengaruhi oleh manajer pada level tersebut.
Jika noncontrollable costs dimasukkan dalam
budget (harus turut meng-cover biaya), maka
dalam budget harus jelas dipisahkan antara
controllable dan nocontrollable cost.
57. MULTIPLE MEASURES OF
PERFORMANCE
Budget bukan satu-satunya alat ukur kinerja
manajemen.
Oleh perusahaan Budget sering dianggap alat ukur
utama , sehingga bisa membentuk perilaku yang
menyimpang yang dikenal dengan milking the firm
or myopia.
Myopic behavior : Manajer melakukan tindakan
untuk mendongkrak kinerja jangka pendek tetapi
efek jangka panjang aksi tersebut akan
membahayakan kinerja /citra perusahaan.
Editor's Notes
The operating budget consists of a budgeted income statement accompanied by the following supporting schedules:
sales budget
production budget
direct materials purchases budget
direct labor budget
overhead budget
selling and administrative expenses budget
ending finished goods inventory budget
cost of goods sold budget
The sales budget is approved by the budget committee and describes expected sales in units and dollars. Because the sales budget is the basis for all of the other operating budgets and most of the financial budgets, it is important that it be as accurate as possible. The first step in creating a sales budget is to develop the sales forecast. The sales forecast is just the initial estimate, and it is often adjusted by the budget committee.
CORNERSTONE 9-1 shows how to prepare the sales budget for Texas Rex’s standard t-shirt line. The company has only one product. Notice that the sales budget in Cornerstone 9-1 reveals that Texas Rex’s sales fluctuate seasonally with most sales taking place in the summer and fall quarters.
The production budget tells how many units must be produced to meet sales needs and to satisfy ending inventory requirements. To compute the units to be produced, both unit sales and units of beginning and ending finished goods inventory are needed:
Units to be produced = Expected unit sales + Units in desired ending inventory (EI) – Units in beginning inventory (BI)
CORNERSTONE 9-2 shows how to prepare a production budget using the formula presented in the previous slide.
Notice that the production budget is expressed in terms of units.
After the production budget is completed, the budgets for direct materials, direct labor, and overhead can be prepared. The direct materials purchases budget tells the amount and cost of raw materials to be purchased in each time period. The formula used for calculating purchases is shown in this slide.
Texas Rex uses two types of raw materials: plain t-shirts and ink. The direct materials purchases budgets for these two materials are presented in CORNERSTONE 9-3.
Notice how similar the direct materials purchases budget is to the production budget.
The direct materials purchases budget for ink is done in the same way as t-shirts except that each unit produced requires 5 ounces of ink. So the total units to be produced must be multiplied by 5 to get the production needs of ink.
The direct labor budget shows the total direct labor hours and the direct labor cost needed for the number of units in the production budget. As with direct materials, the budgeted hours of direct labor are determined by the relationship between labor and output.
The direct labor budget for Texas Rex is shown in CORNERSTONE 9-4.
The overhead budget shows the expected cost of all production costs other than direct materials and direct labor. Many companies use direct labor hours as the driver for overhead. Then costs that vary with direct labor hours are pooled and called variable overhead. The remaining overhead items are pooled into fixed overhead.
The method for preparing an overhead budget using the approach to cost behavior discussed in the previous slide is shown in CORNERSTONE 9-5.
The ending finished goods inventory budget supplies information needed for the balance sheet and also serves as an important input for the preparation of the cost of goods sold budget. To prepare this budget, the unit cost of producing finished goods must be calculated by using information from the direct materials, direct labor, and overhead budgets.
The way to calculate the unit cost of a t-shirt and the cost of the planned ending inventory is shown in CORNERSTONE 9-6.
Notice that the Ending Finished Goods Inventory Budget brings together information from the production, direct labor, and overhead budgets to compute the unit product cost for the year.
Assuming that the beginning finished goods inventory is valued at $1,251, the budgeted cost of goods sold schedule can be prepared using information from Cornerstones 9-3 to 9-6.
The cost of goods sold budget reveals the expected cost of the goods to be sold.
The cost of goods sold budget is shown in CORNERSTONE 9-7. The output of the Cost of Goods Sold Budget, the budgeted cost of goods sold, will appear in the budgeted income statement.
The selling and administrative expenses budget outlines planned expenditures for nonmanufacturing activities. As with overhead, selling and administrative expenses can be broken down into fixed and variable components. Such items as sales commissions, freight, and supplies vary with sales activity.
The selling and administrative expenses budget is illustrated in CORNERSTONE 9-8. Notice how the selling and administrative expenses budget follows a very similar format as that of the overhead budget.
With the completion of the budgeted cost of goods sold schedule and the budgeted selling and administrative expenses budget, a company has all the operating budgets needed to prepare an estimate of operating income.
The way to prepare this budgeted income statement is shown in CORNERSTONE 9-9. The eight budgets already prepared, along with the budgeted operating income statement, define the operating budget for Texas Rex.
The remaining budgets found in the master budget are the financial budgets. The usual financial budgets prepared are:
• cash budget
• budgeted balance sheet
• budget for capital expenditures
Understanding cash flows is critical in managing a business. Often, a business successfully produces and sells products but fails because of timing problems associated with cash inflows and outflows. Because cash flow is the lifeblood of an organization, the cash budget is one of the most important budgets in the master budget. The basic structure of a cash budget includes cash receipts, disbursements, any excess or deficiency of cash, and financing as shown in this slide.
Cash available consists of the beginning cash balance and the expected cash receipts. Expected cash receipts include all sources of cash for the period being considered. The principal source of cash is from sales. Since a large proportion of sales is usually on account, a major task of an organization is to determine the pattern of collection for its accounts receivable. If a company has been in business for a while, it can use past experience to determine what percentage of credit sales are paid in the month of and months following sales. This is used to create a schedule of cash collections on accounts receivable.
CORNERSTONE 9-10 shows how to create a schedule for cash collections on accounts receivable for Texas Rex.
While Texas Rex expects no bad debts expense, that may not be the case for all firms. If a firm expects less than 100 percent of the credit sales to be received in cash, then it expects some bad debts and for the purposes of cash budgeting, the percentage that it estimates as bad debts is ignored since it will not be received in cash.
The cash disbursements section lists all planned cash outlays for the period. All expenses that do not require a cash outlay are excluded from the list (e.g., depreciation is never included in the disbursements section). Just as sources of cash may require a schedule of cash collections on accounts receivable to calculate cash expected from credit sales, the disbursements section may require care in handling payments on account.
CORNERSTONE 9-11 shows how to handle timing differences arising from paying for items on account.
Notice that Cornerstone 9-11 does not allow for less than 100 percent repayment of accounts payable. The ethical firm always intends to repay its debts.
A disbursement that is typically not included in the disbursements section is interest on short-term borrowing. This interest expenditure is reserved for the section on loan repayments.
Some companies expand the basic cash budget format by adding lines to show any borrowing or repayment necessary to achieve a minimum desired cash amount. When this is done, the preliminary ending cash balance is called cash excess or deficiency. The cash excess or deficiency line is compared to the minimum cash balance (or lowest amount of cash acceptable as noted by company policy). If a cash deficiency exists with less cash on hand than is needed, the company usually obtains a short-term loan. A cash excess is usually used to repay loans or used to make temporary investments.
Borrowings and Repayments: If a company converts its preliminary cash balance line to a cash excess (deficiency) line, it may be borrowing or repaying money. If there is a deficiency, this section shows the necessary amount to be borrowed. When excess cash is available, this section shows planned repayments, including interest expense.
Ending Cash Balance: The last line of the cash budget is the ending cash balance. This is the planned amount of cash to be on hand at the end of the period after all receipts and disbursements, as well as borrowings and repayments, are considered.
The way to prepare a cash budget is illustrated in CORNERSTONE 9-12.
Cornerstone 9-12 reveals that much of the information needed to prepare the cash budget comes from the operating budgets and from the schedules for cash receipts on accounts receivable and cash payments on accounts payable.
The budgeted balance sheet depends on information contained in the current balance sheet and in the other budgets in the master budget. Explanations for the budgeted figures are typically provided in the footnotes.
Budgets are often used to judge the performance of managers. Bonuses, salary increases, and promotions are all affected by a manager’s ability to achieve or beat budgeted goals. Positive behavior occurs when the goals of each manager are aligned with the goals of the organization and each manager has the drive to achieve them. The alignment of managerial and organizational goals is often referred to as goal congruence. If the budget is improperly administered, subordinate managers may subvert the organization’s goals. Dysfunctional behavior is individual behavior that is in basic conflict with the goals of the organization.
Key features that promote a reasonable degree of positive behavior include:
frequent feedback on performance
monetary and nonmonetary incentives
participative budgeting
realistic standards
controllability of costs
multiple measures of performance
Managers need to know how they are doing as the year progresses. Frequent, timely performance reports allow managers to know how successful their efforts have been, to take corrective actions, and to change plans as necessary.
Incentives are the means an organization uses to influence a manager to exert effort to achieve an organization’ s goal. Traditional organizational theory assumes that employees are primarily motivated by monetary rewards, they resist work, and they are inefficient and wasteful. Thus, monetary incentives are used to control a manager’s tendency to shirk and waste resources by relating budgetary performance to salary increases, bonuses, and promotions. Nonmonetary incentives, including job enrichment, increased responsibility and autonomy, and recognition programs can be used to enhance a budgetary control system.
Rather than imposing budgets on subordinate managers, participative budgeting allows subordinate managers considerable say in how the budgets are established. The increased responsibility and challenge inherent in the process provide nonmonetary incentives that lead to a higher level of performance.
However, participative budgeting has three potential problems:
setting standards that are either too high or too low
building slack into the budget (often referred to as padding the budget)
pseudoparticipation
Some managers may tend to set the budget either too loose or too tight. Since budgeted goals tend to become the manager’s goals when participation is allowed, making this mistake in setting the budget can result in decreased performance levels. The trick is to get managers in a participative setting to set high but achievable goals.
The second problem with participative budgeting is the opportunity for managers to build slack into the budget. Budgetary slack (or padding the budget) exists when a manager deliberately underestimates revenues or overestimates costs in an effort to make the future period appear less attractive in the budget than they think it will be in reality. Either approach increases the likelihood that the manager will achieve the budget and consequently reduces the risk that the manager faces.
The act of padding the budget is questionable when considering what is viewed as ethical professional practice. It is certainly not communicating information fairly and objectively and constitutes a violation of the credibility standard.
The third problem with participation occurs when top management assumes total control of the budgeting process, seeking only superficial participation from lower-level managers. This practice is termed pseudoparticipation. Top management is simply obtaining formal acceptance of the budget from subordinate managers, not seeking real input.
Budgets should reflect operating realities, including the following:
Actual Levels of Activity: Flexible budgets are used to ensure that budgeted costs can be realistically compared with costs for actual levels of activity.
Seasonal Variations: Interim budgets should reflect seasonal effects. Toys ‘‘R’’ Us, for example, would expect much higher sales in the quarter that includes Christmas than in other quarters.
Efficiencies: Budgetary cuts should be based on planned increases in efficiency and not simply arbitrary across-the-board reductions. Across-the-board cuts without any formal evaluation may impair the ability of some units to carry out their missions.
General Economic Trends: General economic conditions also need to be considered. Budgeting for a significant increase in sales when a recession is projected is not only foolish but also potentially dangerous.
Ideally, managers are held accountable only for costs that they can control. Controllable costs are costs whose level a manager can influence. If noncontrollable costs are put in the budgets of subordinate managers to help them understand that these costs also need to be covered, then they should be separated from controllable costs and labeled as noncontrollable.
Often, organizations make the mistake of using budgets as their only measure of managerial performance. While financial measures of performance are important, overemphasis can lead to a form of dysfunctional behavior called milking the firm or myopia. Myopic behavior occurs when a manager takes actions that improve budgetary performance in the short run but bring long-run harm to the firm. Budgetary measures alone cannot prevent myopic behavior.
