Distinguish Planning Decisions From Control Decisions: Accounting And Financial Management Assignment, UCD

Management Accounting

1. Distinguish planning decisions from control decisions.
2. Where does the management accounting function fit into an organization’s structure?

Master Budget

3. What is the master budget and why is it useful?
4. “The sales forecast is the cornerstone for budgeting.” Why?
5. What is budgetary slack? What are the pros and cons of building slack into the budget from the point of view of an employee?
6. Define rolling budgets. Give an example.

Question 2

Flexible Budgets And Variances

1. The following information relates to ABC Table Ltd, a manufacturer of tables for colleges for 2018:

Budget

Sales    44,000 units at €55 per table

Variable cost €35 per unit

Fixed costs €660,000

Actual

Sales 46,000 units at €57 each

Variable costs €33 per unit

Fixed cost €627,000

Net Profit €477,000