managerial accounting 1,2
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Chapter 9 Budgeting Required: 1. Prepare a flexible budget performance report for March. Use Exhibit 9-4 as a guide. 2. What are the deficiencies in the original cost control report? How does the report that you prepared in (1) above overcome these deficiencies? (CMA, adapted)Case study title: "Managerial accounting in times of crisis" The Coronavirus (COVID19) pandemic defined as global health crisis that consider being a great challenge since World War Two. In December 2019, the COVID19 phenomena appeared in a seafood market, Wuhan - China, while registered as a new disease officially on 7" of January 2020 (WHO, 2020)'. Countries all over the world are battling with the spread of COVID19 through enormous amount of testing kits, mandate/by-choice quarantine of citizen and cancelling large events all over the world (WHO, 2020). Constantly, the battle against the COVID 19 stressing all the resources of the countries. In other words, its pandemic goes beyond more than a global health crisis, it influence the social, educational, economic and political dimensions in the world, and creates related crisis in the future that require years to recover (UN, 2020)-. Many of our great cities and communities are deserted as people stay indoors either by choice or government order, social life changed dramatically, shops theatres and restaurants closed during the pandemic. Assume you are a managerial accountant in a small and medium-sized perfume production company in Doha, which was established five years ago. In the current economic situation, the company is facing some financial challenges. The company's CEO held a meeting with you to discuss ways out of that crisis so that the company could survive and even compete under the current circumstances. Based on the foregoing, each student is required to submit a coordinated and detailed report to address the following points, demonstrating their presentation and communication skills: 1. Discuss the various activities that the managerial accountant may be assigned to in the company in order to help the CEO make rational decisions under the current circumstances.detailed budgets: Menare a master budget for the three-month period ending June 30. Include the following 1. A sales budget by month and in total. C. A schedule of expected cash collections from sales, by month and in total. and in total . A merchandise purchases budget in units and in dollars. Show the budget by month in total. A schedule of expected cash disbursements for merchandise purchases, by month and 2 A cash budget. Show the budget by month and in total. A budgeted income statement for the three-month period ending June 30. Use the variable costing approach. 4. A budgeted balance sheet as of June 30. CASE 9-28 Critiquing a Report: Preparing Spending Variances |103, LO4) Farrar University offers an extensive continuing education program in many cities throughout the province. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool operated with 20 vehicles until February when an additional automobile was acquired at the request of the university administration. The motor pool furnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairs are performed at a nearby com- mercial garage. Each year, the supervisor of the motor pool prepares an annual budget, which is reviewed by the university and approved after suitable modifications. The following cost control report shows actual selling and administrative costs for March of the current year compared to one-twelfth of the annual budget: FARRAR UNIVERSITY MOTOR POOL Cost Control Report For the Month Ended March 31 Monthly Annual Budget (1/12 of March (Over) Under Budget Annual Budget) Actual Budget Kilometres. . . . . . . . . . 600,000 50.000 58.000 AutoS . . . . . . . . CE. 20 20 21 $ 96,000 $ 8,000 $ 8970 $ (970) Oil, minor repairs, parts. ... .....Fad.....494 30.000 2,500 2840 (340) Outside repairs ... . . .... .. ....... 9,600 800 980 (180) 18000 1500 1.625 (125) 103.320 8.610 8,610 0 Salaries and benefits. ... .. . ... ...... 4000 4.200 Vehicle depreciation ... . . . . .. 48000 200 Total .... .....sim... $304.920 $ 25,410 $ 27 225 $(1815) The annual budget was based on the following assumptions: a. 50.16 per kilometre for gasoline. b. $0.05 per kilometre for oil, minor repairs, and parts. $480 per automobile per year for outside repairs. d. $900 per automobile per year for insurance. e. $8,610 per month for salaries and benefits. $2400 per automobile per year for depreciation. The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool's performance
