Chuong2 - DuToanLinhHoat Va PhanTichThanhQuaHoatDong

Chương 2
Dự toán linh hoạt và Phân tích thành

quả hoạt động (Flexible Budgets and
Performance Analysis)
2-2
MỤC TIÊU (LEARNING

OBJECTIVES)
After studying Chapter 2, you should be able to:
 LO1 Prepare a flexible budget.
 LO2 Prepare a report showing activity variances.
 LO3 Prepare a report showing revenue and spending
variances.
 LO4 Prepare a performance report that combines activity
variances and revenue and spending variances.

 LO5 Prepare a flexible budget with more than one cost driver.
 LO6 Understand common errors made in preparing
performance reports based on budgets and actual results.
ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Khoa Keá Toaùn ©Leâ Ñình Tröïc 2022
2-3
NOÄI DUNG
 Dö toaùn linh hoaït (Flexible Budgets)
– ïÑaëc ñieåm cuûa döï toaùn linh hoaït.(Characteristics of a Flexible Budget)
– Nhöôïc ñieåm cuûa döï toaùn tónh (Deficiencies of the Static Planning Budget )
– Caùch laäp döï toaùn linh hoaït (How a Flexible Budget Works )
 Caùc cheânh leäch döï toaùn linh hoaït (Flexible Budget Variances)
– Cheânh leäch hoaït ñoäng (Activity Variances )
– Cheânh leäch Doanh thu vaø Cheânh leäch chi tieâu (Revenue and Spending
Variances )
– Baùo caùo thaønh quaû keát hôïp caùc cheânh leäch: hoaït ñoäng, doanh thu vaø chi
tieâu. (A Performance Report Combining Activity and Revenue and Spending
Variances )
 Döï toaùn linh hoaït vôùi nhieàu tieâu thöùc phaân boå chi phí. (Flexible
Budgets with Multiple Cost Drivers )
 Caùc loãi phoå bieán (Some Common Errors )

2-4
Learning Objective 1
Prepare a flexible budget.

2-5
Đặc ñiểm cuûa döï toaùn linh hoaït

(Characteristics of Flexible Budgets)
Hmm! Comparing
static planning budgets
Planning budgets with actual costs
are prepared for is like comparing
a single, planned apples and oranges.
level of activity.
Performance
evaluation is difficult
when actual activity
differs from the
planned level of
activity.
2-6
Đặc ñiểm cuûa döï toaùn linh hoaït

(Characteristics of Flexible Budgets)
May be prepared for any activity
level in the relevant range.
Show costs that should have been

incurred at the actual level of
activity, enabling “apples to apples”
cost comparisons.
Help managers control costs.
Improve performance evaluation.

Let’s look at Larry’s Lawn Service.
2-7
Nhöôïc ñieåm cuûa döï toaùn tónh

(Deficiencies of the Static Planning Budget)
Larry’s Lawn Service provides lawn care in a planned
community where all lawns are approximately the same size.
At the end of May, Larry prepared his June budget based on
mowing 500 lawns. Since all of the lawns are similar in size,
Larry felt that the number of lawns mowed in a month would
be the best way to measure overall activity for his business.
Larry’s Budget
2-8

Larry’s Planning Budget

2-9

Larry’s Actual Results

2-10

Larry’s Actual Results Compared with the Planning Budget

2-11

Larry’s Actual Results Compared with the Planning Budget
Since these variances are unfavorable, has Larry

done a poor job controlling costs?
Since these variances are favorable, has Larry

done a good job controlling costs?
2-12

 The relevant question is . . .
“How much of the cost variances are due to
higher activity and how much is due to cost
control?”
 To answer the question,

we must
the budget to the
actual level of activity.
2-13
Caùch laäp Döï toaùn linh hoaït

(How a Flexible Budget Works)
To a budget, we need to know that:
– Total variable costs change
in direct proportion to
changes in activity.
b l e
– Total fixed costs remain ria
Va
unchanged within the Fixed
relevant range.

Laäp Döï toaùn linh hoaït
2-14
(Preparing a Flexible Budget)

Larry’s Flexible Budget

2-15
Quick Check 
What should the total wages and salaries cost be in a
flexible budget for 600 lawns?
a. $18,000
b. $20,000.
c. $23,000.
d. $25,000.

2-16
Quick Check 
What should the
be the
total
total
wages
wages
andand
salaries
salaries
costcost
be in a
flexible budget for 600 lawns?
a. $18,000
b. $20,000.
c. $23,000.
d. $25,000.
Total wages and salaries cost

= $5,000 + ($30 per lawn  600 lawns)
= $5,000 + $18,000 = $23,000
2-17
Prepare a report showing
activity variances.

2-18
Cheânh leäch hoaït ñoäng

(Activity Variances)
Planning Flexible
budget revenues budget revenues
and expenses and expenses
The differences between

the budget amounts are
called activity variances.
2-19
Cheânh leäch hoaït ñoäng

(Activity Variances)
Larry’s Flexible Budget Compared with the Planning Budget

2-20
Prepare a report showing

revenue and spending
variances.

2-21
Cheânh leäch Doanh thu vaø Cheânh leäch

chi tieâu (Revenue and Spending Variances)
Flexible budget revenue Actual revenue
The difference is a revenue variance.
Flexible budget cost Actual cost
The difference is a spending variance.

2-22

Larry’s Flexible Budget Compared with the Actual Results
$1,750 favorable
revenue variance

2-23

Larry’s Flexible Budget Compared with the Actual Results
Spending
variances

2-24
Prepare a performance report

that combines activity
variances and revenue and
spending variances.

2-25
Baùo caùo thaønh quaû keát hôïp caùc cheânh leäch:

hoaït ñoäng, doanh thu vaø chi tieâu. (A
Performance Report Combining Activity and
Revenue and Spending Variances)
Now, let’s use budgeting

concepts to combine the revenue and
spending variances reports for Larry’s
Lawn Service.

Baùo caùo thaønh quaû keát hôïp caùc cheânh leäch: hoaït ñoäng, 2-26
doanh thu vaø chi tieâu. (A Performance Report Combining

Activity and Revenue and Spending Variances)


50 lawns × $75 per lawn 50 lawns × $30 per lawn


$43,000 actual - $41,250 budget

2-29
Prepare a flexible budget

with more than one cost
driver.

Döï toaùn linh hoaït vôùi nhieàu tieâu thöùc
2-30
phaân boå chi phí (Flexible Budgets with

Multiple Cost Drivers)
More than one cost
driver may be needed to
adequately explain all of
the costs in an organization.
The cost formulas used

to prepare a flexible
budget can be adjusted
to recognize multiple
cost drivers.
2-31

Because of the large unfavorable wages and salaries spending
variance, Larry decided to add an additional cost driver for
wages and salaries. The variance is due primarily to the number
of hours required for the additional edging and trimming. So
Larry estimates the additional hours and builds those hours into
both his revenue and expense budget formulas.
Larry’s New Budget

2-32

Larry’s Budget Based on More than One Cost Driver

2-33
Understand common errors

made in preparing
performance reports based on
budgets and actual results.

2-34
Caùc loãi phoå bieán (Some

Common Errors)
The most common errors when preparing performance
reports are to implicitly assume that:
1. All costs are fixed, or that;
2. All costs are variable.
Assume all costs are fixed.

2-35
Common Error 1: Assuming All

Costs Are Fixed
Faulty Analysis Comparing Budgeted Amounts to Actual Amounts

2-36
Common Error 2: Assuming All

Costs Are Variable
Faulty Analysis that Assumes All Budget Items Are Variable

2-37
Heát Chöông 2


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Chương 2

Dự toán linh hoạt và Phân tích thành

MỤC TIÊU (LEARNING

 LO2 Prepare a report showing activity variances.

 LO3 Prepare a report showing revenue and spending

variances and revenue and spending variances.

 LO6 Understand common errors made in preparing

performance reports based on budgets and actual results.

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Prepare a flexible budget.

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Đặc ñiểm cuûa döï toaùn linh hoaït

Đặc ñiểm cuûa döï toaùn linh hoaït

Show costs that should have been

Help managers control costs.

Improve performance evaluation.

Nhöôïc ñieåm cuûa döï toaùn tónh

Nhöôïc ñieåm cuûa döï toaùn tónh

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Nhöôïc ñieåm cuûa döï toaùn tónh

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Nhöôïc ñieåm cuûa döï toaùn tónh

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Nhöôïc ñieåm cuûa döï toaùn tónh

Since these variances are unfavorable, has Larry

Since these variances are favorable, has Larry

Nhöôïc ñieåm cuûa döï toaùn tónh

 To answer the question,

Caùch laäp Döï toaùn linh hoaït

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

(Preparing a Flexible Budget)

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Total wages and salaries cost

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Cheânh leäch hoaït ñoäng

The differences between

Cheânh leäch hoaït ñoäng

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Prepare a report showing

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Cheânh leäch Doanh thu vaø Cheânh leäch

The difference is a revenue variance.

Flexible budget cost Actual cost

The difference is a spending variance.

Cheânh leäch Doanh thu vaø Cheânh leäch

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Cheânh leäch Doanh thu vaø Cheânh leäch

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Prepare a performance report

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

Baùo caùo thaønh quaû keát hôïp caùc cheânh leäch:

Now, let’s use budgeting

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

doanh thu vaø chi tieâu. (A Performance Report Combining

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

doanh thu vaø chi tieâu. (A Performance Report Combining

50 lawns × $75 per lawn 50 lawns × $30 per lawn

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH

doanh thu vaø chi tieâu. (A Performance Report Combining

$43,000 actual - $41,250 budget

ÑAÏI HOÏC KINH TEÁ TP. HOÀ CHÍ MINH