ACCT 301 UMUC The US Securities and Exchange Commissions Report
I don’t understand this Accounting question and need help to study.
REQUIREMENT: Prepare a report for your chosen corporation’s senior managers to interpret and explain the SEC10K financial reports. The report should be one to two full in pages in length: single-spaced, 12 pt. font, one-inch margins, and in your own words. Make note of the grading rubric which requires you to address project questions, display critical thinking, analysis, research, application of course concepts, write in your own words, and demonstrate a high degree of effective communication (i.e., formal business writing with proper grammar)
- Address the reasons for and benefits of budgeting.
- Discuss the concept of using budgets for variance analysis and strategy.
- Searching within the 746 page downloadable Managerial Accounting Volume II in the e-readings you will find highlights of padding in budgeting where managers budget low expectations to enable actual results to look good. Short term positive results for rewards/recognition. This is an important concept to understand and evaluate.
- How are budgets used to evaluate performance (i.e. variance analysis)?
- How can and should management use variance analysis for strategic purposes?
- How would a company be affected by budget strategy based on personal goals (i.e. padding the budget to make short term operational results look good) rather than budgeting based on current and future market analysis?
- How might this affect sales dollars, sales volume, and profits? Consider the impact of these budgeting decision on the corporation’s plans for future financing, production volume and capacity (both short term and long term).