Budgeting: Profit Planning and Control

3rd Quarter activity actual Amount analysis annual profit plan assume basic basis breakeven point budget allowances budget director budget procedures budgeted sales cent Chapter computed concept concern consideration Control account cost control cost-volume-profit December 31 decisions departmental depreciation Dept detailed developed direct labor budget direct labor hours direct machine hours discussed distribution dollars effect Ending December 31 estimates evaluation executives expense budgets factors factory overhead firm fixed and variable fixed costs historical cost Illustration income statement indicated initial markup inventory involves January levels long-range planning managerial manufacturing overhead markup ment method month monthly operations over-all overhead rates performance report period planning and control planning budget policies problem producing departments production budget purchases raw material relevant range requirements responsibility return on investment sales budget standard cost Superior Manufacturing Company supervisors tion top management Total variable budget variable components variable costs variance variation volume