Page 213 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes * November 30 inventory balance = $16,000
Recent and Forecasted sales:
October = $38,000, December = $25,000, February = $75,000, April = $45,000
November = 25,000, January = 62,000, March = 38,000

Prepare a master budget including a budgeting income statement, balance sheet, statement
of cash receipts and disbursements, and supporting schedules for the months January
through March 2005.
11. In the above question, analyse if and why there is a need for a bank loan and what
operating sources provides the cash for the repayment of the bank loan?

Answers: Self Assessment

1. iv 2. iv
3. iii 4. iii
5. iii 6. i
7. iii 8. Future
9. Sales 10. Internal

11. Materials/Purchase 12. Sales Overhead
13. preparation, control 14. Zero base
15. Variable sales

9.10 Further Readings

Books B.M. Lall Nigam and I.C. Jain, Cost Accounting, Prentice-Hall of India (P) Ltd.

Hilton, Maher and Selto, Cost Management, 2nd Edition, Tata McGraw-Hill
Publishing Company Ltd.
M.N. Arora, Cost and Management Accounting, 8th Edition, Vikas Publishing House
(P) Ltd.
M.P. Pandikumar, Management Accounting, Excel Books.

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