Gadget Division Budget

Gadget Division Budget

Analysis of Gadgets Division Budget

Do you need help with your “Gadget Division Budget accounting homework”? Reach out to us.

Based on the above analysis and the actual figures posted this year, it was noted that there were several discrepancies in the budget; some items were overstated, and others were understated. Some significant items, such as radio sales, had been overstated. The budget committee should inform Gadgets Division managers that their budget has some discrepancies which need to be revised before being included in the master budget. Their previous budget for this year had several variations between the budgeted estimates and the actual results. Notably, the budget had overstated items that significantly impacted the firm’s revenue, e.g., sales from the radio. Gadget Division’s budget for the next year would probably have variations similar to the previous year’s budget and would be less effective in the firm’s financial planning operations.

Notably, the percentage of net sales for radio sales in the actual figures for the year was 43.94%, while that in the budget was 45.11%. This item, therefore, needs to be corrected in the budget to reflect the actual sales made in the year. Similarly, the percentage of sales from telephone revenue on the actual results was 15.77%, while that in the planning budget was 14%. The percentage of sales on miscellaneous income has been projected at 4.48%, yet the actual cost was only 4.23%. The value of goods sold has been understated by more than 3%; these estimates must be changed to match the actual results. The budget needs to be revised and the data altered to achieve a more precise budget that would be effective in planning.

Other Related Post: Understanding Consumers

References

Needles, B. E., Powers, M., & Crosson, S. V. (2013). Financial and Managerial Accounting. Nelson Education.

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

The Gadget Division Budget

I need help with the Accounting Problem from Chapter 20: Case 4.

Gadget Division Budget

The textbook reading is from

• Financial and Managerial Accounting 10^th Edition by Belverd E. Needles, Martin Powers, and Susan V Crosson

Since Smart Enterprises inaugurated participative budgeting ten years ago, everyone in the organization—from maintenance personnel to the president’s staff—has had a voice in the budgeting process. Until recently, participative budgeting has worked in the best interests of the company as a whole. However, some managers use the practice solely to benefit their divisions. The budget committee has therefore asked you, the company’s controller, to analyze this year’s divisional budgets carefully before incorporating them into the company’s master budget.

The Gadget Division was the first of the company’s six divisions to submit its budget request for next year. The division’s budgeted income statement follows.