Homework: Case on Budgeting
You are hired as a new cost accountant to Ciccetti Corporation. The company manager, David, is having a meeting with you in his office. He brought you this budgeted income statement that was completed by the previous cost accountant. David asks you to provide him with a report explaining the statement in clear, straightforward language, and how you plan to handle the annual budget.
Flexible Budget Performance Part 2 Flexible BudgetActivity VariancesPlanning BudgetCustomers served (q)36,000 33,000Revenue ($4.80q)$172,800$14,400 F$158,400Expenses: Wages and salaries ($36,900 + 1.60q)94,5004,800 U89,700Supplies ($0.90q)32,4002,700 U29,700Insurance ($13,300)13,300013,300Miscellaneous Expense ($6,300 + $0.40q)20,7001,200 U19,500Total expense160,9008,700 U152,200Net operating income$11,900$5,700 F$6,200Instructions
Write 2 to 3 pages report in which you:
a. Explain the budgeted income statement.
b. Outline how you would create annual budgeted financial statements.
c. Analyze the difference between a static budget and a flexible budget, including the importance of each.
d. Evaluate the importance of reading and correctly interpreting budgeted financial statements.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
The specific course learning outcome associated with this homework is:
a. Analyze the accuracy of a business's budgeting process to help managers make effective decisions.