Help me on the author Garrison in managerial accounting chapter 9 case 23 on the budgets
I'm sorry, but as an AI text-based bot, I don't have access to specific textbooks or their content. However, I can still explain how to approach the case and help you understand the concept of budgets in managerial accounting.
To start with, the author referred to in your question is likely Garrison, as you mentioned. Garrison is a well-known author in the field of managerial accounting. If you have a textbook or study materials written by him, it could be helpful to refer to them for guidance and support in understanding the concepts and solving the case.
Now, let's talk about budgets in managerial accounting. A budget is a formal financial plan that outlines the expected income and expenses for a specific period, usually a year. It helps businesses and organizations in planning, controlling, and analyzing their financial performance.
When approaching the case, it's essential to understand the context and the specific requirements given. Read the case carefully and identify the key elements such as the scenario, business or organization involved, and the specific questions or tasks that need to be addressed.
To navigate through the case successfully, here are a few steps you can follow:
1. Read the case thoroughly: Familiarize yourself with the details, facts, and any provided financial data.
2. Identify the budget elements: Understand which components are required in the budget. Common elements include sales revenue, production costs, operating expenses, and capital expenditures.
3. Determine the budget period: Determine the time frame for which the budget is being prepared. It could be monthly, quarterly, or annually.
4. Gather relevant information: Analyze the information provided in the case and identify any additional data needed to construct the budget. This may involve researching industry benchmarks, historical data, or making reasonable assumptions.
5. Develop the Sales Budget: Start by estimating the expected sales and revenue for the budget period. Consider factors such as market conditions, historical trends, and any additional information provided.
6. Create the Production Budget: Based on the sales forecast, determine the required level of production necessary to meet the expected demand. Consider factors such as production capacity, desired inventory levels, and any resource constraints.
7. Prepare the Operating Expense Budget: Estimate the various operating expenses such as labor, materials, advertising, and administrative costs. Consider historical data, industry standards, and any other relevant information.
8. Calculate the Cash Budget: Determine the inflows and outflows of cash during the budget period. Consider factors such as cash receipts from sales, cash disbursements for expenses, and any financing or investment activities.
9. Analyze the Budget: Once you have prepared the individual budgets, analyze the financial implications. Look for potential areas of concern, areas of opportunity, and any deviations from the company's goals or expectations.
Remember, each case may have unique requirements and complexities. It's crucial to follow any specific instructions given in the case and use the appropriate techniques and formulas as per your course materials.
If you are still facing difficulties with understanding the specific case 23 in Garrison's managerial accounting chapter 9 or need further assistance, consider reaching out to your professor, classmates, or referring to additional resources like study guides, online forums, or tutoring services for additional support.