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Essay Available:
Pages:
2 pages/β‰ˆ550 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Coursework
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 11.23
Topic:

Annual Budgeted Financial Statements for Ciccetti Corporation

Coursework Instructions:

Overview
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 Budget Activity Variances Planning Budget
Customers served (q) 36,000 33,000
Revenue ($4.80q) $172,800 $14,400 F $158,400
Expenses:
Wages and salaries ($36,900 + 1.60q) 94,500 4,800 U 89,700
Supplies ($0.90q) 32,400 2,700 U 29,700
Insurance ($13,300) 13,300 0 13,300
Miscellaneous Expense ($6,300 + $0.40q) 20,700 1,200 U 19,500
Total expense 160,900 8,700 U 152,200
Net operating income $11,900 $5,700 F $6,200
Instructions
Write a 2–3 page report in which you:
-Explain the budgeted income statement.
-Outline how you would create annual budgeted financial statements.
-Analyze the difference between a static budget and a flexible budget, including the importance of each.
-Evaluate the importance of reading and correctly interpreting budgeted financial statements.
Use three sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment.

Coursework Sample Content Preview:

Annual Budgeted Financial Statements
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Annual Budgeted Financial Statements
The budgeted income statement indicates that the business has a high volume of customers who boost income. The profit for the business is approximately $11,900 after subtracting the total operating costs, which amount to $160,900. The total revenue from sales is $172,800, which is obtained by serving approximately 36,000 customers. The income statement indicates a list of expenses. Since the value of miscellaneous expenses, there would be a significant way of adjusting to reduce the number of expenses to increase the profits. Such an income statement is crucial for all businesses to enhance transparency and easy evaluation of the business trend. That way, it is easy to determine whether the business is on an upward or downward trajectory. Creating an annual financial statement would require calculating the figures and then preparing a budgeted income statement. The factors of consideration in these calculations include the budgeted cost of sold goods, budgeted sales expenses, budgeted administrative expenses, and budgeted corporate tax (Balaguer-Coll, 2016). Analyzing these factors could lead to the urge to decide the required changes to increase profitability for the organization.
The static budget, also known as a master budget, is prepared for a single level of production volume. This type of budget is common in incorporating anticipated values during computations. For instance, when the production value is predicted to be $100,000, it is included in the static budget to ensure close approximates. Just like the name, a static budget remains unchanged regardless of whether there are changes in budgeting within a firm. However, it predicts revenues and expenses for a particular period. Therefore, this type of budget is most used when there are high predictable expenses and sales within an organization, and no major changes are ...
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