Ünite 6: Using Cost Data for Planning — Sınav Hazırlık Notları

• Always start the master budget process with the sales budget, as all subsequent operating and financial budgets depend directly or indirectly on sales forecasts.
• Remember that merchandising companies do not prepare a production budget; they prepare a merchandise purchase budget instead.
• Pay close attention to the distinction between static and flexible budgets: static budgets use a single fixed activity level, while flexible budgets adjust for cost behavior over an interval of activity.
• Do not confuse the direct materials usage budget (materials needed for production) with the direct materials purchase budget (materials to be bought after adjusting for inventory levels).
• Identify non-cash expenses like depreciation and deduct them when translating operating expenses into cash disbursements for the cash budget.
• Understand that participative budgeting (bottom-up) increases motivation and accuracy but carries the risk of budgetary slack (padding).