Flexible Budgets
For purposes of this deliverable, you are to expand (with subpoints) only the GROWTH, APPLICATION, and ANALYSIS sections of the outline. Eventually, the rest of this outline should be completed in preparation for the final Learning Journal draft (which will be in full narrative form). The content of your outline should be written in a business-writing format that is crisp and to point. Complete sentences and proper grammar should be used in the narrative form of your Learning Journal but are not necessary in this outline format.
GROWTH
Flexible Budgets (Characteristics of a Flexible Budget, Deficiencies of the Static Planning Budget, How a Flexible Budget Works, Flexible Budget Variances, Activity Variances, Revenue and Spending Variances, Performance Report Combining Activity and Revenue and Spending Variances, Performance Reports in Nonprofit Organizations, Performance Reports in Cost Centers)
i. Give examples of how your original ideas/concepts/beliefs about managerial accounting were challenged and adjusted. Growth may include:
1. New knowledge that has been learned but has yet to be applied.
2. Contrary notions that have trumped your old ideas/concepts/beliefs.
3. Reinforcements and extensions to tried-and-true ideas/concepts/beliefs that you continue to retain.
4. etc.
APPLICATION
i. Apply lessons learned in the course to your own real-world experiences/environment.
1. These applications may have already occurred in your experience, or you may point out potential applications that you are now able to foresee.
2. Go further than merely telling how a particular idea/concept/lesson would be applied.
3. In addition, give compelling reasons why this particular application is appropriate and will likely be successful.
4. etc.
ANALYSIS
a. Describe a complex managerial problem that you are attempting to solve
b. Break the complex problem down into smaller parts which can each be addressed with lessons learned in the course.
c. Demonstrate how your analytical skills developed in this course may be used to solve the various problems
d. Apply as many of the following principles of analytical thinking as possible:
• Analysis involves drawing connection among ideas.
• Key words related to analysis include: execute, implement, solve, use, demonstrate, interpret, operate, schedule, sketch.
• Analysis is a systematic approach to problem solving
• Complex problems are made simpler by separating them into more understandable elements
o This involves the identification of purposes and facts, the statement of defensible assumptions, and the formulation of conclusions
• Analytical skills involve seeing relationships, determining if-then causalities, finding evidence to support a theory, and making judgments and decisions using a set of criteria.
Sample Solution
When first learning about managerial accounting, I had originally assumed it was simply a way to keep track of financial performance. Upon further exploration and investigation, however, my understanding has grown significantly. For example, I have learned that managerial accounting is heavily reliant on budgeting as well as interpreting data in order to make informed decisions (Galbraith et al. 2019). This allows managers and business owners alike to plan ahead for future growth but also assess the effectiveness of past actions and choices they have made.
I have also become aware of the various types of budgets available: static planning budgets, flexible budgets and zero-based budgeting (McGhee 2018). While static planning budgets are used for short-term analysis and require minimal effort to create; flexible budgets provide insightful analysis over an extended period by taking into consideration changes such as inflation or fixed cost adjustments(MBA Skool 2020). Zero-based budgeting takes this one step further by analyzing expenses line by line rather than examining them from a yearly/monthly perspective which gives more granular control over spending habits(Galbraith et al 2019)
My newfound knowledge has challenged me to think outside the box when it comes to decision making. That being said, managerial accounting provides far greater insight than its financial counterpart–allowing businesses to anticipate potential problems while having data driven solutions readily at their disposal.(McGhee 2018).
