BU247 Lecture Notes - Lecture 4: Indian Railways, Finished Good, Net Present Value
Document Summary
Performance report a report showing a comparison of projected and actual amounts for a specific period of time. Benefits of budgeting requires managers to plan, coordination and communication, benchmark for evaluating actual performance,budgeting begins months before beginning of period. Purchases of raw materials in the 3rd quarter direct materials. Budgeted ending inventory + budgeted sales for month - budgeted beginning inventory. Required production units = budgeted sales units + desired ending finished goods. How much cash should be collected/disbursed working capital. Dm bi + purchases - dm ei = dm used in production. Cash disbursements for the month in cash budget as cash disbursements. The difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased. The difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period.
