Assignment Prompt & Instructions
– ## WAL_MBAX_6050_Week01_Part1_assignmentTemplate.docx
– ## USW1_WMBA_6050_Week01_Data_FallTerm-dd334dca-4daf-4461-adbc-154a905899b7.pdf
– ## WAL_MBAX_6050_Week01_Part2_assignmentTemplate.xlsx
– ## Week1AssignmentInstructions-AcctforMgmtDecisionMaking.docx
– ## Week1LearningResources-AcctforMgmtDecisionMaking.docx
**## WAL_MBAX_6050_Week01_Part1_assignmentTemplate.docx**
**Week 1 Assignment:**
**Using Accounting Information for Decision Making—Financial Information and Budgets**
**Prepared by: Replace this text with your name.**
**Date: Replace this text with the submission date.**
**Walden University**
**MBAX 6050:**
**_Accounting for Management Decision Making_**
**Financial Information for Decision Making**
Replace this text with introductory information. Add or remove headings as necessary.
**[Heading]**
Replace or remove this text. Add or remove headings as necessary.
**[Sub-Heading]**
Replace or remove this text. Add or remove headings as necessary.
**Budget Preparation**
Replace this text with introductory information. Add or remove headings as necessary.
**[Heading]**
Insert your budget and your notes from Excel. Add or remove headings as necessary.
For information on inserting data from Excel into Word, refer to the following:
Microsoft. (n.d.).
_Insert a chart from an Excel spreadsheet into Word_.
[https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1)
**References**
[Please delete this note before submitting your Assignment. For more information about formatting your reference list, please visit the following site:
[https://academicguides.waldenu.edu/writingcenter/apa/references](https://academicguides.waldenu.edu/writingcenter/apa/references).]
Include appropriately formatted references to support your Assignment. Refer to the Assignment guidelines for further information on the requirements.
Page 5 of 15
**## USW1_WMBA_6050_Week01_Data_FallTerm-dd334dca-4daf-4461-adbc-154a905899b7.pdf**
© 2022 Walden University, LLC Page 1 of 1
Week 1 Assignment Data
AMcarParts, Inc.
Income Statement
For the Year Just Ended
Revenues $ 325,000,000
Operating Expenses
Salaries and Wages
$ 175,000,000
Payroll taxes, etc. 70,000,000
Supplies 12,975,000
Delivery Fleet 5,020,000
Communications 525,000
Insurance 1,975,000
Office supplies 195,000
Miscellaneous
Operating Income
1,835,000
267,525,000
57,475,000
Other Income/Expense
Interest expense
Income Before Income Taxes
1,980,000
55,495,000
Provision for Income Taxes
Net Income
12,208,900
$ 43,286,100
Notes and Assumptions Change Percentage
1. Revenue is from selling after-market automotive parts. Increase 2%
2. Salaries are gross for all employees. Increase 2%
3. Payroll taxes are 40% of salaries and wages. No Change 0%
4. Supplies include raw materials, hardware, tools, etc. Increase 5%
5. Gas, maintenance, etc are for delivery vehicles. Increase 5%
6. Company communication plan. Increase 2%
7. Insurance is for liability, vehicles, and unemployment. Increase 10%
8. Office supplies include all supplies not associated with
manufacturing. Increase 3%
9. Miscellaneous accounts for all other expenses not
covered above. Increase 7%
10. Interest expense is for purchase of the delivery fleet. No Change 0%
11. Provision for income taxes is 22% No Change 0%
**## WAL_MBAX_6050_Week01_Part2_assignmentTemplate.xlsx**
## Part 2 – Budget Preparation
| | | | | | | |
| — | — | — | — | — | — | — |
| | Instructions:<br>Your Instructor will provide the numerical data and other information pertaining to the year-end income statement and ideas the company has for the upcoming year. <br>Use that information to complete a budget for the upcoming year by filling in the highlighted cells in the first table. <br>Then, using the Line Item Notes table, illustrate to the organization how each line item in the budget was prepared by filling in the highlighted cells. |
| | AMcarParts, Inc. | | | | | Line Item Notes |
| | Budgeted Income Statement (Template) |
| | For the Upcoming Year |
| | Revenues |
| | Operating Expenses |
| | | Salaries and Wages |
| | | Payroll taxes, etc. |
| | | Supplies |
| | | Delivery Fleet |
| | | Communications |
| | | Insurance |
| | | Office supplies |
| | | Miscellaneous |
| | | | | – 0 |
| | Operating Income | | | – 0 |
| | Other Income/Expense |
| | | Interest expense |
| | Income Before Income Taxes | | | – 0 |
| | Provision for Income Taxes | | | – 0 |
| | Net Income | | | $ – 0 |
**## Week1AssignmentInstructions-AcctforMgmtDecisionMaking.docx**
**Account for Management Decision Making**
**Week 1 Assignment**
**Using Accounting Information for Decision Making- Financial Information and Budgets**
For this Assignment, you will take on the role of a consultant and provide two reports on using accounting information for decision making to a fictitious organization so it can better prepare for the future. This week, you will submit the first report, which will focus on financial information and budgeting. Next week, you will submit the second report, which will focus on performance reports and balanced scorecards.
AMcarParts, Inc., a midsize manufacturer of after-market automotive parts, has had an unexpected amount of turnover in its leadership staff, leaving the owners in need of someone who can help them understand accounting concepts, such as strategic planning, budgeting, and forecasting. You have been hired as a consultant to help the owners understand this information for future planning and to assist them with some immediate budgeting needs and concerns.
The product of your analysis will be a business report on using accounting information for decision making that will be delivered to the owners of a midsize manufacturer. In addition to the requirements that follow, be sure to incorporate references to appropriate academic sources, such as those found in this week’s Learning Resources or those in the Walden Library.
**To prepare for this Assignment:**
· Download Week 1 Part 1 Assignment Template.
· Download Week 1 Part 2 Assignment Template.
· Your instructor will provide part of the data to complete the calculations for the “Budget Preparation” part of this week’s Assignment. To access that information, refer to
[Doc Sharing](https://waldenu.instructure.com/courses/184427/modules/items/7761484).
Submit your completed business report and accompanying Excel file. Your report should be 4–5 pages in length (excluding title page and references) and should address the following:
For this part of your business report, you are to provide an analysis on financial statements, strategic planning, budgeting, and forecasting. In the context of this Assignment, the organization’s leaders would use this information to develop their draft budget, which they would then provide to you for the budget preparation. In your analysis, address the following:
· Describe the four basic financial statements—income statement, statement of stockholders’ equity, statement of financial position (also known as a balance sheet), and statement of cash flows—and the purpose of each.
· Compare the concepts of strategic planning, budgeting, and forecasting for an organization. Specifically:
· Describe each concept and the ways they are interrelated as well as their differences.
· Analyze the role that each concept plays within an organization. In your analysis, be sure to include how strategic planning, budgeting, and forecasting are used to improve organizational performance.
· Be sure to include citations and references to support your work.
· Explain what responsibility centers are (in general) as well as the three types of responsibility centers: cost centers, profit centers, and investment centers.
· Identify the decision rights assigned to each type of center, being sure to include examples for each type of responsibility center.
For this part of your business report, you will prepare a budget in Excel and demonstrate how it was developed. You will use the organization’s year-end income statement and ideas the company has for the upcoming year. Be sure to address the following:
· Using the Week 1 Part 2 Assignment Template and the data provided by your Instructor in the
[Doc Sharing](https://waldenu.instructure.com/courses/184427/modules/items/7761484) area, prepare a budget of the upcoming year for the organization.
· Illustrate to the organization how each line item in the budget was prepared. (
**Note:** You will include these notes in the indicated cells within the Assignment Template.)
·
**Note:** In addition to submitting your work in Excel, you will insert your budget and your notes into your main document. For information on inserting data from Excel into Word, refer to the following:
· Microsoft. (n.d.).
[_Insert a chart from an Excel spreadsheet into Word_ Links to an external site.](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1).
[https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1)
**## Week1LearningResources-AcctforMgmtDecisionMaking.docx**
**Account for Management Decision Making**
**Week 1: Learning Resources**
**Understanding Financial Statement**
Financial statements are some of the building blocks that organizations need to help them analyze where they have been and where they are heading in the future. Through these resources, you will explore the four basic financial statements that are prepared. Public companies are required to submit them to the Securities and Exchange Commission. Although private companies are not required to do so, they still need them for other purposes, such as loans, planning, and reflection on the past year.
· U.S. Securities and Exchange Commission. (2007, February 5).
[_Beginners’ guide to financial statementLinks to an external site._](https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html). https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html
· Walden University, LLC.
(2024).
[_Financial statements_[PDF]](https://waldenu.instructure.com/courses/184427/files/15152251?wrap=1) [Download Financial statements [PDF]](https://waldenu.instructure.com/courses/184427/files/15152251/download?download_frd=1). Walden University Canvas. https://waldenu.instructure.com
· Walden University, LLC. (2021).
_The four financial statements_ [Video]. Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Strategic Planning, Budgeting, and Forecasting**
Strategic planning, budgeting, and forecasting can each take many different forms, yet they are all part of moving an organization toward achieving its goals for a successful future. In these resources, you will explore what they are, how they are different, how they fit together, and how they contribute to success.
· Makridakis, S., & Spiliotis, E. (2021).
[The M5 competition and the future of human expertise in forecastingLinks to an external site.](https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=148015455&site=eds-live&scope=site&authtype=shib&custid=s6527200).
_Foresight: The International Journal of Applied Forecasting_ , (60), 33–37.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
· Walden University, LLC. (2024).
[_Strategic planning, budgeting, and forecasting_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259?wrap=1) [Download Strategic planning, budgeting, and forecasting [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Preparing The Budget**
The ability to implement and adhere to a budget is a key factor in any organization’s success. Leaders rely on budgets to help them make critical decisions related to operational and resource-related matters, among other things. Budgeting is also a key aspect of an organization’s strategic planning. Through these resources, you will examine the use of budgets for an organization.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[7.1 describe how and why managers use budgetsLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets)
· Onwuzulike, U. (2015, September 17).
[Is budgeting drowning strategic planning in your organisation?Links to an external site.](https://link.gale.com/apps/doc/A428873263/EAIM?u=minn4020&sid=EAIM&xid=eab12de3) _Vanguard_ .
[https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/](https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/)
· Rivera, J., & Milani, K. (2020).
[Budgeting for international operationsLinks to an external site.](https://www.sfmagazine.com/articles/2020/december/budgeting-for-international-operations).
_Strategic Finance, 102_ (6), 46–52.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
**Responsibility Centers**
Are managers responsible for all activities in an organization or only for their area? Managers should only be held responsible for activities they can control. For example, if a manager is in charge of a production department, that manager should be responsible for what is produced as well as the labor and materials needed for production. However, the manager should
_not_ be responsible for whether the items produced are sold, as that is the responsibility of the sales department. Using these resources, you will examine various types of responsibility centers.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.3 describe the types of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.4 describe the effects of various decisions on performance evaluation of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers)
· Walden University, LLC. (2024).
[_The differences between cost centers, profit centers, and investment centers_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264?wrap=1) [Download The differences between cost centers, profit centers, and investment centers [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**## Week1LearningResources-AcctforMgmtDecisionMaking.docx**
**Account for Management Decision Making**
**Week 1: Learning Resources**
**Understanding Financial Statement**
Financial statements are some of the building blocks that organizations need to help them analyze where they have been and where they are heading in the future. Through these resources, you will explore the four basic financial statements that are prepared. Public companies are required to submit them to the Securities and Exchange Commission. Although private companies are not required to do so, they still need them for other purposes, such as loans, planning, and reflection on the past year.
· U.S. Securities and Exchange Commission. (2007, February 5).
[_Beginners’ guide to financial statementLinks to an external site._](https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html). https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html
· Walden University, LLC.
(2024).
[_Financial statements_[PDF]](https://waldenu.instructure.com/courses/184427/files/15152251?wrap=1) [Download Financial statements [PDF]](https://waldenu.instructure.com/courses/184427/files/15152251/download?download_frd=1). Walden University Canvas. https://waldenu.instructure.com
· Walden University, LLC. (2021).
_The four financial statements_ [Video]. Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Strategic Planning, Budgeting, and Forecasting**
Strategic planning, budgeting, and forecasting can each take many different forms, yet they are all part of moving an organization toward achieving its goals for a successful future. In these resources, you will explore what they are, how they are different, how they fit together, and how they contribute to success.
· Makridakis, S., & Spiliotis, E. (2021).
[The M5 competition and the future of human expertise in forecastingLinks to an external site.](https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=148015455&site=eds-live&scope=site&authtype=shib&custid=s6527200).
_Foresight: The International Journal of Applied Forecasting_ , (60), 33–37.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
· Walden University, LLC. (2024).
[_Strategic planning, budgeting, and forecasting_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259?wrap=1) [Download Strategic planning, budgeting, and forecasting [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Preparing The Budget**
The ability to implement and adhere to a budget is a key factor in any organization’s success. Leaders rely on budgets to help them make critical decisions related to operational and resource-related matters, among other things. Budgeting is also a key aspect of an organization’s strategic planning. Through these resources, you will examine the use of budgets for an organization.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[7.1 describe how and why managers use budgetsLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets)
· Onwuzulike, U. (2015, September 17).
[Is budgeting drowning strategic planning in your organisation?Links to an external site.](https://link.gale.com/apps/doc/A428873263/EAIM?u=minn4020&sid=EAIM&xid=eab12de3) _Vanguard_ .
[https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/](https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/)
· Rivera, J., & Milani, K. (2020).
[Budgeting for international operationsLinks to an external site.](https://www.sfmagazine.com/articles/2020/december/budgeting-for-international-operations).
_Strategic Finance, 102_ (6), 46–52.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
**Responsibility Centers**
Are managers responsible for all activities in an organization or only for their area? Managers should only be held responsible for activities they can control. For example, if a manager is in charge of a production department, that manager should be responsible for what is produced as well as the labor and materials needed for production. However, the manager should
_not_ be responsible for whether the items produced are sold, as that is the responsibility of the sales department. Using these resources, you will examine various types of responsibility centers.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.3 describe the types of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.4 describe the effects of various decisions on performance evaluation of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers)
· Walden University, LLC. (2024).
[_The differences between cost centers, profit centers, and investment centers_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264?wrap=1) [Download The differences between cost centers, profit centers, and investment centers [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**## WAL_MBAX_6050_Week01_Part1_assignmentTemplate.docx**
**Week 1 Assignment:**
**Using Accounting Information for Decision Making—Financial Information and Budgets**
**Prepared by: Replace this text with your name.**
**Date: Replace this text with the submission date.**
**Walden University**
**MBAX 6050:**
**_Accounting for Management Decision Making_**
**Financial Information for Decision Making**
Replace this text with introductory information. Add or remove headings as necessary.
**[Heading]**
Replace or remove this text. Add or remove headings as necessary.
**[Sub-Heading]**
Replace or remove this text. Add or remove headings as necessary.
**Budget Preparation**
Replace this text with introductory information. Add or remove headings as necessary.
**[Heading]**
Insert your budget and your notes from Excel. Add or remove headings as necessary.
For information on inserting data from Excel into Word, refer to the following:
Microsoft. (n.d.).
_Insert a chart from an Excel spreadsheet into Word_.
[https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1)
**References**
[Please delete this note before submitting your Assignment. For more information about formatting your reference list, please visit the following site:
[https://academicguides.waldenu.edu/writingcenter/apa/references](https://academicguides.waldenu.edu/writingcenter/apa/references).]
Include appropriately formatted references to support your Assignment. Refer to the Assignment guidelines for further information on the requirements.
Page 5 of 15
**## USW1_WMBA_6050_Week01_Data_FallTerm-dd334dca-4daf-4461-adbc-154a905899b7.pdf**
© 2022 Walden University, LLC Page 1 of 1
Week 1 Assignment Data
AMcarParts, Inc.
Income Statement
For the Year Just Ended
Revenues $ 325,000,000
Operating Expenses
Salaries and Wages
$ 175,000,000
Payroll taxes, etc. 70,000,000
Supplies 12,975,000
Delivery Fleet 5,020,000
Communications 525,000
Insurance 1,975,000
Office supplies 195,000
Miscellaneous
Operating Income
1,835,000
267,525,000
57,475,000
Other Income/Expense
Interest expense
Income Before Income Taxes
1,980,000
55,495,000
Provision for Income Taxes
Net Income
12,208,900
$ 43,286,100
Notes and Assumptions Change Percentage
1. Revenue is from selling after-market automotive parts. Increase 2%
2. Salaries are gross for all employees. Increase 2%
3. Payroll taxes are 40% of salaries and wages. No Change 0%
4. Supplies include raw materials, hardware, tools, etc. Increase 5%
5. Gas, maintenance, etc are for delivery vehicles. Increase 5%
6. Company communication plan. Increase 2%
7. Insurance is for liability, vehicles, and unemployment. Increase 10%
8. Office supplies include all supplies not associated with
manufacturing. Increase 3%
9. Miscellaneous accounts for all other expenses not
covered above. Increase 7%
10. Interest expense is for purchase of the delivery fleet. No Change 0%
11. Provision for income taxes is 22% No Change 0%
**## WAL_MBAX_6050_Week01_Part2_assignmentTemplate.xlsx**
## Part 2 – Budget Preparation
| | | | | | | |
| — | — | — | — | — | — | — |
| | Instructions:<br>Your Instructor will provide the numerical data and other information pertaining to the year-end income statement and ideas the company has for the upcoming year. <br>Use that information to complete a budget for the upcoming year by filling in the highlighted cells in the first table. <br>Then, using the Line Item Notes table, illustrate to the organization how each line item in the budget was prepared by filling in the highlighted cells. |
| | AMcarParts, Inc. | | | | | Line Item Notes |
| | Budgeted Income Statement (Template) |
| | For the Upcoming Year |
| | Revenues |
| | Operating Expenses |
| | | Salaries and Wages |
| | | Payroll taxes, etc. |
| | | Supplies |
| | | Delivery Fleet |
| | | Communications |
| | | Insurance |
| | | Office supplies |
| | | Miscellaneous |
| | | | | – 0 |
| | Operating Income | | | – 0 |
| | Other Income/Expense |
| | | Interest expense |
| | Income Before Income Taxes | | | – 0 |
| | Provision for Income Taxes | | | – 0 |
| | Net Income | | | $ – 0 |
**## Week1AssignmentInstructions-AcctforMgmtDecisionMaking.docx**
**Account for Management Decision Making**
**Week 1 Assignment**
**Using Accounting Information for Decision Making- Financial Information and Budgets**
For this Assignment, you will take on the role of a consultant and provide two reports on using accounting information for decision making to a fictitious organization so it can better prepare for the future. This week, you will submit the first report, which will focus on financial information and budgeting. Next week, you will submit the second report, which will focus on performance reports and balanced scorecards.
AMcarParts, Inc., a midsize manufacturer of after-market automotive parts, has had an unexpected amount of turnover in its leadership staff, leaving the owners in need of someone who can help them understand accounting concepts, such as strategic planning, budgeting, and forecasting. You have been hired as a consultant to help the owners understand this information for future planning and to assist them with some immediate budgeting needs and concerns.
The product of your analysis will be a business report on using accounting information for decision making that will be delivered to the owners of a midsize manufacturer. In addition to the requirements that follow, be sure to incorporate references to appropriate academic sources, such as those found in this week’s Learning Resources or those in the Walden Library.
**To prepare for this Assignment:**
· Download Week 1 Part 1 Assignment Template.
· Download Week 1 Part 2 Assignment Template.
· Your instructor will provide part of the data to complete the calculations for the “Budget Preparation” part of this week’s Assignment. To access that information, refer to
[Doc Sharing](https://waldenu.instructure.com/courses/184427/modules/items/7761484).
Submit your completed business report and accompanying Excel file. Your report should be 4–5 pages in length (excluding title page and references) and should address the following:
For this part of your business report, you are to provide an analysis on financial statements, strategic planning, budgeting, and forecasting. In the context of this Assignment, the organization’s leaders would use this information to develop their draft budget, which they would then provide to you for the budget preparation. In your analysis, address the following:
· Describe the four basic financial statements—income statement, statement of stockholders’ equity, statement of financial position (also known as a balance sheet), and statement of cash flows—and the purpose of each.
· Compare the concepts of strategic planning, budgeting, and forecasting for an organization. Specifically:
· Describe each concept and the ways they are interrelated as well as their differences.
· Analyze the role that each concept plays within an organization. In your analysis, be sure to include how strategic planning, budgeting, and forecasting are used to improve organizational performance.
· Be sure to include citations and references to support your work.
· Explain what responsibility centers are (in general) as well as the three types of responsibility centers: cost centers, profit centers, and investment centers.
· Identify the decision rights assigned to each type of center, being sure to include examples for each type of responsibility center.
For this part of your business report, you will prepare a budget in Excel and demonstrate how it was developed. You will use the organization’s year-end income statement and ideas the company has for the upcoming year. Be sure to address the following:
· Using the Week 1 Part 2 Assignment Template and the data provided by your Instructor in the
[Doc Sharing](https://waldenu.instructure.com/courses/184427/modules/items/7761484) area, prepare a budget of the upcoming year for the organization.
· Illustrate to the organization how each line item in the budget was prepared. (
**Note:** You will include these notes in the indicated cells within the Assignment Template.)
·
**Note:** In addition to submitting your work in Excel, you will insert your budget and your notes into your main document. For information on inserting data from Excel into Word, refer to the following:
· Microsoft. (n.d.).
[_Insert a chart from an Excel spreadsheet into Word_ Links to an external site.](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1).
[https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1)
**## Week1LearningResources-AcctforMgmtDecisionMaking.docx**
**Account for Management Decision Making**
**Week 1: Learning Resources**
**Understanding Financial Statement**
Financial statements are some of the building blocks that organizations need to help them analyze where they have been and where they are heading in the future. Through these resources, you will explore the four basic financial statements that are prepared. Public companies are required to submit them to the Securities and Exchange Commission. Although private companies are not required to do so, they still need them for other purposes, such as loans, planning, and reflection on the past year.
· U.S. Securities and Exchange Commission. (2007, February 5).
[_Beginners’ guide to financial statementLinks to an external site._](https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html). https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html
· Walden University, LLC.
(2024).
[_Financial statements_[PDF]](https://waldenu.instructure.com/courses/184427/files/15152251?wrap=1) [Download Financial statements [PDF]](https://waldenu.instructure.com/courses/184427/files/15152251/download?download_frd=1). Walden University Canvas. https://waldenu.instructure.com
· Walden University, LLC. (2021).
_The four financial statements_ [Video]. Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Strategic Planning, Budgeting, and Forecasting**
Strategic planning, budgeting, and forecasting can each take many different forms, yet they are all part of moving an organization toward achieving its goals for a successful future. In these resources, you will explore what they are, how they are different, how they fit together, and how they contribute to success.
· Makridakis, S., & Spiliotis, E. (2021).
[The M5 competition and the future of human expertise in forecastingLinks to an external site.](https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=148015455&site=eds-live&scope=site&authtype=shib&custid=s6527200).
_Foresight: The International Journal of Applied Forecasting_ , (60), 33–37.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
· Walden University, LLC. (2024).
[_Strategic planning, budgeting, and forecasting_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259?wrap=1) [Download Strategic planning, budgeting, and forecasting [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Preparing The Budget**
The ability to implement and adhere to a budget is a key factor in any organization’s success. Leaders rely on budgets to help them make critical decisions related to operational and resource-related matters, among other things. Budgeting is also a key aspect of an organization’s strategic planning. Through these resources, you will examine the use of budgets for an organization.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[7.1 describe how and why managers use budgetsLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets)
· Onwuzulike, U. (2015, September 17).
[Is budgeting drowning strategic planning in your organisation?Links to an external site.](https://link.gale.com/apps/doc/A428873263/EAIM?u=minn4020&sid=EAIM&xid=eab12de3) _Vanguard_ .
[https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/](https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/)
· Rivera, J., & Milani, K. (2020).
[Budgeting for international operationsLinks to an external site.](https://www.sfmagazine.com/articles/2020/december/budgeting-for-international-operations).
_Strategic Finance, 102_ (6), 46–52.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
**Responsibility Centers**
Are managers responsible for all activities in an organization or only for their area? Managers should only be held responsible for activities they can control. For example, if a manager is in charge of a production department, that manager should be responsible for what is produced as well as the labor and materials needed for production. However, the manager should
_not_ be responsible for whether the items produced are sold, as that is the responsibility of the sales department. Using these resources, you will examine various types of responsibility centers.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.3 describe the types of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.4 describe the effects of various decisions on performance evaluation of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers)
· Walden University, LLC. (2024).
[_The differences between cost centers, profit centers, and investment centers_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264?wrap=1) [Download The differences between cost centers, profit centers, and investment centers [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**## WAL_MBAX_6050_Week01_Part1_assignmentTemplate.docx**
**Week 1 Assignment:**
**Using Accounting Information for Decision Making—Financial Information and Budgets**
**Prepared by: Replace this text with your name.**
**Date: Replace this text with the submission date.**
**Walden University**
**MBAX 6050:**
**_Accounting for Management Decision Making_**
**Financial Information for Decision Making**
Replace this text with introductory information. Add or remove headings as necessary.
**[Heading]**
Replace or remove this text. Add or remove headings as necessary.
**[Sub-Heading]**
Replace or remove this text. Add or remove headings as necessary.
**Budget Preparation**
Replace this text with introductory information. Add or remove headings as necessary.
**[Heading]**
Insert your budget and your notes from Excel. Add or remove headings as necessary.
For information on inserting data from Excel into Word, refer to the following:
Microsoft. (n.d.).
_Insert a chart from an Excel spreadsheet into Word_.
[https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1)
**References**
[Please delete this note before submitting your Assignment. For more information about formatting your reference list, please visit the following site:
[https://academicguides.waldenu.edu/writingcenter/apa/references](https://academicguides.waldenu.edu/writingcenter/apa/references).]
Include appropriately formatted references to support your Assignment. Refer to the Assignment guidelines for further information on the requirements.
Page 5 of 15
**## USW1_WMBA_6050_Week01_Data_FallTerm-dd334dca-4daf-4461-adbc-154a905899b7.pdf**
© 2022 Walden University, LLC Page 1 of 1
Week 1 Assignment Data
AMcarParts, Inc.
Income Statement
For the Year Just Ended
Revenues $ 325,000,000
Operating Expenses
Salaries and Wages
$ 175,000,000
Payroll taxes, etc. 70,000,000
Supplies 12,975,000
Delivery Fleet 5,020,000
Communications 525,000
Insurance 1,975,000
Office supplies 195,000
Miscellaneous
Operating Income
1,835,000
267,525,000
57,475,000
Other Income/Expense
Interest expense
Income Before Income Taxes
1,980,000
55,495,000
Provision for Income Taxes
Net Income
12,208,900
$ 43,286,100
Notes and Assumptions Change Percentage
1. Revenue is from selling after-market automotive parts. Increase 2%
2. Salaries are gross for all employees. Increase 2%
3. Payroll taxes are 40% of salaries and wages. No Change 0%
4. Supplies include raw materials, hardware, tools, etc. Increase 5%
5. Gas, maintenance, etc are for delivery vehicles. Increase 5%
6. Company communication plan. Increase 2%
7. Insurance is for liability, vehicles, and unemployment. Increase 10%
8. Office supplies include all supplies not associated with
manufacturing. Increase 3%
9. Miscellaneous accounts for all other expenses not
covered above. Increase 7%
10. Interest expense is for purchase of the delivery fleet. No Change 0%
11. Provision for income taxes is 22% No Change 0%
**## WAL_MBAX_6050_Week01_Part2_assignmentTemplate.xlsx**
## Part 2 – Budget Preparation
| | | | | | | |
| — | — | — | — | — | — | — |
| | Instructions:<br>Your Instructor will provide the numerical data and other information pertaining to the year-end income statement and ideas the company has for the upcoming year. <br>Use that information to complete a budget for the upcoming year by filling in the highlighted cells in the first table. <br>Then, using the Line Item Notes table, illustrate to the organization how each line item in the budget was prepared by filling in the highlighted cells. |
| | AMcarParts, Inc. | | | | | Line Item Notes |
| | Budgeted Income Statement (Template) |
| | For the Upcoming Year |
| | Revenues |
| | Operating Expenses |
| | | Salaries and Wages |
| | | Payroll taxes, etc. |
| | | Supplies |
| | | Delivery Fleet |
| | | Communications |
| | | Insurance |
| | | Office supplies |
| | | Miscellaneous |
| | | | | – 0 |
| | Operating Income | | | – 0 |
| | Other Income/Expense |
| | | Interest expense |
| | Income Before Income Taxes | | | – 0 |
| | Provision for Income Taxes | | | – 0 |
| | Net Income | | | $ – 0 |
**## Week1AssignmentInstructions-AcctforMgmtDecisionMaking.docx**
**Account for Management Decision Making**
**Week 1 Assignment**
**Using Accounting Information for Decision Making- Financial Information and Budgets**
For this Assignment, you will take on the role of a consultant and provide two reports on using accounting information for decision making to a fictitious organization so it can better prepare for the future. This week, you will submit the first report, which will focus on financial information and budgeting. Next week, you will submit the second report, which will focus on performance reports and balanced scorecards.
AMcarParts, Inc., a midsize manufacturer of after-market automotive parts, has had an unexpected amount of turnover in its leadership staff, leaving the owners in need of someone who can help them understand accounting concepts, such as strategic planning, budgeting, and forecasting. You have been hired as a consultant to help the owners understand this information for future planning and to assist them with some immediate budgeting needs and concerns.
The product of your analysis will be a business report on using accounting information for decision making that will be delivered to the owners of a midsize manufacturer. In addition to the requirements that follow, be sure to incorporate references to appropriate academic sources, such as those found in this week’s Learning Resources or those in the Walden Library.
**To prepare for this Assignment:**
· Download Week 1 Part 1 Assignment Template.
· Download Week 1 Part 2 Assignment Template.
· Your instructor will provide part of the data to complete the calculations for the “Budget Preparation” part of this week’s Assignment. To access that information, refer to
[Doc Sharing](https://waldenu.instructure.com/courses/184427/modules/items/7761484).
Submit your completed business report and accompanying Excel file. Your report should be 4–5 pages in length (excluding title page and references) and should address the following:
For this part of your business report, you are to provide an analysis on financial statements, strategic planning, budgeting, and forecasting. In the context of this Assignment, the organization’s leaders would use this information to develop their draft budget, which they would then provide to you for the budget preparation. In your analysis, address the following:
· Describe the four basic financial statements—income statement, statement of stockholders’ equity, statement of financial position (also known as a balance sheet), and statement of cash flows—and the purpose of each.
· Compare the concepts of strategic planning, budgeting, and forecasting for an organization. Specifically:
· Describe each concept and the ways they are interrelated as well as their differences.
· Analyze the role that each concept plays within an organization. In your analysis, be sure to include how strategic planning, budgeting, and forecasting are used to improve organizational performance.
· Be sure to include citations and references to support your work.
· Explain what responsibility centers are (in general) as well as the three types of responsibility centers: cost centers, profit centers, and investment centers.
· Identify the decision rights assigned to each type of center, being sure to include examples for each type of responsibility center.
For this part of your business report, you will prepare a budget in Excel and demonstrate how it was developed. You will use the organization’s year-end income statement and ideas the company has for the upcoming year. Be sure to address the following:
· Using the Week 1 Part 2 Assignment Template and the data provided by your Instructor in the
[Doc Sharing](https://waldenu.instructure.com/courses/184427/modules/items/7761484) area, prepare a budget of the upcoming year for the organization.
· Illustrate to the organization how each line item in the budget was prepared. (
**Note:** You will include these notes in the indicated cells within the Assignment Template.)
·
**Note:** In addition to submitting your work in Excel, you will insert your budget and your notes into your main document. For information on inserting data from Excel into Word, refer to the following:
· Microsoft. (n.d.).
[_Insert a chart from an Excel spreadsheet into Word_ Links to an external site.](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1).
[https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1](https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheet-into-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1)
**## Week1LearningResources-AcctforMgmtDecisionMaking.docx**
**Account for Management Decision Making**
**Week 1: Learning Resources**
**Understanding Financial Statement**
Financial statements are some of the building blocks that organizations need to help them analyze where they have been and where they are heading in the future. Through these resources, you will explore the four basic financial statements that are prepared. Public companies are required to submit them to the Securities and Exchange Commission. Although private companies are not required to do so, they still need them for other purposes, such as loans, planning, and reflection on the past year.
· U.S. Securities and Exchange Commission. (2007, February 5).
[_Beginners’ guide to financial statementLinks to an external site._](https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html). https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html
· Walden University, LLC.
(2024).
[_Financial statements_[PDF]](https://waldenu.instructure.com/courses/184427/files/15152251?wrap=1) [Download Financial statements [PDF]](https://waldenu.instructure.com/courses/184427/files/15152251/download?download_frd=1). Walden University Canvas. https://waldenu.instructure.com
· Walden University, LLC. (2021).
_The four financial statements_ [Video]. Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Strategic Planning, Budgeting, and Forecasting**
Strategic planning, budgeting, and forecasting can each take many different forms, yet they are all part of moving an organization toward achieving its goals for a successful future. In these resources, you will explore what they are, how they are different, how they fit together, and how they contribute to success.
· Makridakis, S., & Spiliotis, E. (2021).
[The M5 competition and the future of human expertise in forecastingLinks to an external site.](https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=148015455&site=eds-live&scope=site&authtype=shib&custid=s6527200).
_Foresight: The International Journal of Applied Forecasting_ , (60), 33–37.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
· Walden University, LLC. (2024).
[_Strategic planning, budgeting, and forecasting_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259?wrap=1) [Download Strategic planning, budgeting, and forecasting [PDF]](https://waldenu.instructure.com/courses/184427/files/15152259/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
**Preparing The Budget**
The ability to implement and adhere to a budget is a key factor in any organization’s success. Leaders rely on budgets to help them make critical decisions related to operational and resource-related matters, among other things. Budgeting is also a key aspect of an organization’s strategic planning. Through these resources, you will examine the use of budgets for an organization.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/7-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[7.1 describe how and why managers use budgetsLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets](https://openstax.org/books/principles-managerial-accounting/pages/7-1-describe-how-and-why-managers-use-budgets)
· Onwuzulike, U. (2015, September 17).
[Is budgeting drowning strategic planning in your organisation?Links to an external site.](https://link.gale.com/apps/doc/A428873263/EAIM?u=minn4020&sid=EAIM&xid=eab12de3) _Vanguard_ .
[https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/](https://www.vanguardngr.com/2015/09/is-budgeting-drowning-strategic-planning-in-your-organisation/)
· Rivera, J., & Milani, K. (2020).
[Budgeting for international operationsLinks to an external site.](https://www.sfmagazine.com/articles/2020/december/budgeting-for-international-operations).
_Strategic Finance, 102_ (6), 46–52.
· Shim, J. K., Siegel, J. G., & Shim, A. I. (2012).
[Strategic planning and budgeting: Process, preparation, and controlLinks to an external site.](https://ebookcentral.proquest.com/lib/waldenu/reader.action?docID=697749&ppg=45). In
_Budgeting basics and beyond_ (4th ed.). John Wiley & Sons.
**Responsibility Centers**
Are managers responsible for all activities in an organization or only for their area? Managers should only be held responsible for activities they can control. For example, if a manager is in charge of a production department, that manager should be responsible for what is produced as well as the labor and materials needed for production. However, the manager should
_not_ be responsible for whether the items produced are sold, as that is the responsibility of the sales department. Using these resources, you will examine various types of responsibility centers.
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[Why it mattersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters](https://openstax.org/books/principles-managerial-accounting/pages/9-why-it-matters)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.3 describe the types of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-3-describe-the-types-of-responsibility-centers)
· Franklin, M., Graybeal, P., & Cooper, D. (2019).
[9.4 describe the effects of various decisions on performance evaluation of responsibility centersLinks to an external site.](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers). In
_Principles of accounting, volume 2: Managerial accounting_ . OpenStax.
[https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers](https://openstax.org/books/principles-managerial-accounting/pages/9-4-describe-the-effects-of-various-decisions-on-performance-evaluation-of-responsibility-centers)
· Walden University, LLC. (2024).
[_The differences between cost centers, profit centers, and investment centers_ [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264?wrap=1) [Download The differences between cost centers, profit centers, and investment centers [PDF]](https://waldenu.instructure.com/courses/184427/files/15152264/download?download_frd=1). Walden University Canvas.
[https://waldenu.instructure.com](https://waldenu.instructure.com/)
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