Norton Company, a manufacturing of infant furniture and carriages, is in the initial stages of preparing the annual budget for next year. Scott Ford Hal much as possible about the company's budgeting process. During a recent lunch with Marge Atkins, sales manager, and Pere Granger production manager, Ford initiated the following conversation Ford Since I'm new around here and am going to be involved with the preparation of the annual budget I'd be interested to learn how the two of you estimate sales and production number Atkins We start ou very methodically be looking at recent history, discussing what we know about current accounts, potential customers, and the general state of consumer spending. Then we add intuition to come up with the best forecast we can Grangerlusually take the sales projection as the basis for my projections. Of course, we have to make an estimate of what this year's ending invertories will be, which is sometimes diffi Ford: Why does that present a problem? There must have been an estimate of ending inventories in the budget for the current year Granger Those numbers aren't always reliable because Marge makes some adjustments to the sales numbers before posting them on to me. Grangers What kind of adjustments? Arkine Wol, we don't want to fall short of the sales projections so we ove ourselves and breathing room by lowering the initial sales projection from 5 to 10 Grangur. So you can see why this year's budget is not a very relatie storing point. We always have to adjust the projected production rates as the year progresses and the changes the entire everyone around here does the same thing Required Marge and Peter have described the use of what is sometimes called budgetary slaca For this blog explain the benefits they expect to realize from using budgetary slack. Alsos a management accountant Granger may believe this practice is unethical by referring to the IMS Profesional Practice in Chapter 1, do you agree with him? Please explain Thosignment is due no later than March 25. No lase posts are permissed for blog assignments will assist in your learning and will reinforce the objective ting budgeting methods and techni framework to evaluate sound business decisions. This blog has a value of 10 points. For maximum points provide insight on Bludgetary siec, show in the contest mum points. See grading rubricif you have any questions on the policy. Click on the above link and it will take you directly to the blog Norton Company, a manufacturing of infant furniture and carriages, is in the initial stages of preparing the annual budget for next year. Scott Ford Hal much as possible about the company's budgeting process. During a recent lunch with Marge Atkins, sales manager, and Pere Granger production manager, Ford initiated the following conversation Ford Since I'm new around here and am going to be involved with the preparation of the annual budget I'd be interested to learn how the two of you estimate sales and production number Atkins We start ou very methodically be looking at recent history, discussing what we know about current accounts, potential customers, and the general state of consumer spending. Then we add intuition to come up with the best forecast we can Grangerlusually take the sales projection as the basis for my projections. Of course, we have to make an estimate of what this year's ending invertories will be, which is sometimes diffi Ford: Why does that present a problem? There must have been an estimate of ending inventories in the budget for the current year Granger Those numbers aren't always reliable because Marge makes some adjustments to the sales numbers before posting them on to me. Grangers What kind of adjustments? Arkine Wol, we don't want to fall short of the sales projections so we ove ourselves and breathing room by lowering the initial sales projection from 5 to 10 Grangur. So you can see why this year's budget is not a very relatie storing point. We always have to adjust the projected production rates as the year progresses and the changes the entire everyone around here does the same thing Required Marge and Peter have described the use of what is sometimes called budgetary slaca For this blog explain the benefits they expect to realize from using budgetary slack. Alsos a management accountant Granger may believe this practice is unethical by referring to the IMS Profesional Practice in Chapter 1, do you agree with him? Please explain Thosignment is due no later than March 25. No lase posts are permissed for blog assignments will assist in your learning and will reinforce the objective ting budgeting methods and techni framework to evaluate sound business decisions. This blog has a value of 10 points. For maximum points provide insight on Bludgetary siec, show in the contest mum points. See grading rubricif you have any questions on the policy. Click on the above link and it will take you directly to the blog