Professional Documents
Culture Documents
Performance Analysis
Chapter 11
Learning Objective 1
Slide 2
Planning budgets
are prepared for
a single, planned
level of activity.
Performance
evaluation is difficult
when actual activity
differs from the
planned level of
activity.
McGraw-Hill Education (Asia)
McGraw-Hill/Irwin
Slide 3
Slide 4
Larrys Budget
McGraw-Hill Education (Asia)
McGraw-Hill/Irwin
Slide 5
Slide 6
Slide 7
Slide 8
Slide 9
Slide 10
Slide 11
Slide 12
To
Fixed
Slide 13
Lets prepare a
budget
for Larrys Lawn
Service.
Slide 14
Slide 15
Learning Objective 2
Slide 16
Activity Variances
Planning
budget revenues
and expenses
Flexible
budget revenues
and expenses
Slide 17
Activity Variances
Lets use
budgeting
Slide 18
Activity Variances
Larrys Flexible Budget Compared with the Planning Budget
Slide 19
Activity Variances
Larrys Flexible Budget Compared with the Planning Budget
Activity and revenue increase by 10 percent, but net operating income
increases by more than 10 percent due to the presence of fixed costs.
Slide 20
Learning Objective 3
Slide 21
Actual revenue
Actual cost
Slide 22
budgeting
Slide 23
Slide 24
Slide 25
Learning Objective 4
Prepare a performance
report that combines
activity variances and
revenue and spending
variances.
Slide 26
budgeting
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Learning Objective 5
Slide 32
Slide 33
Slide 34
Slide 35
Learning Objective 6
Understand common
errors made in preparing
performance reports
based on budgets and
actual results.
Slide 36
Slide 37
Slide 38
Slide 39
End of Chapter 11
Slide 40