Professional Documents
Culture Documents
Chapter 11
Chapter 11
Performance Analysis
Chapter 11
Learning Objective 1
McGrawHillEducation(Asia)
McGrawHill/Irwin
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Planning budgets
are prepared for
a single, planned
level of activity.
Performance
evaluation is difficult
when actual activity
differs from the
planned level of
activity.
McGrawHillEducation(Asia)
McGrawHill/Irwin
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Larrys Budget
McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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To
McGrawHillEducation(Asia)
McGrawHill/Irwin
Fixed
Slide 13
Lets prepare a
budget
for Larrys Lawn
Service.
McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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Learning Objective 2
McGrawHillEducation(Asia)
McGrawHill/Irwin
Slide 16
Activity Variances
Planning
budget revenues
and expenses
Flexible
budget revenues
and expenses
Slide 17
Activity Variances
Lets use
budgeting
McGrawHillEducation(Asia)
McGrawHill/Irwin
Slide 18
Activity Variances
Larrys Flexible Budget Compared with the Planning Budget
McGrawHillEducation(Asia)
McGrawHill/Irwin
Slide 19
Activity Variances
Larrys Flexible Budget Compared with the Planning Budget
Activity and revenue increase by 10 percent, but net operating income
increases by more than 10 percent due to the presence of fixed costs.
McGrawHillEducation(Asia)
McGrawHill/Irwin
Slide 20
Learning Objective 3
McGrawHillEducation(Asia)
McGrawHill/Irwin
Slide 21
Actual revenue
Actual cost
Slide 22
budgeting
McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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Learning Objective 4
Prepare a performance
report that combines activity
variances and revenue and
spending variances.
McGrawHillEducation(Asia)
McGrawHill/Irwin
Slide 26
budgeting
McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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Learning Objective 5
McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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Learning Objective 6
McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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McGrawHillEducation(Asia)
McGrawHill/Irwin
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Assignment
In-Class: 11-1, 11-2, 11-3 (pages 532-534)
Take-Home: 11-8, 11-9, 11-10, 11-11 (pages 536-537)
McGrawHillEducation(Asia)
McGrawHill/Irwin
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