Buns Bakery: Creating and Using a Master Budget
- ISBN-10
- 1526428296
- ISBN-13
- 9781526428295
- Category
- Budget
- Language
- English
- Published
- 2009
- Authors
- Teresa Stephenson, Jason C. Porter
Description
This case is intended to help students in upper division or graduate cost or managerial accounting courses gain an in-depth knowledge of budgeting by developing and using a multi-product, multi-period master budget. The case consists of two segments that can be used in conjunction or separately. The first segment allows students to create a master budget. The second segment allows students to use their budgets to make recommendations for improving company performance. The use of multiple products and introduction of incentives to improve company performance add a degree of complexity above that found in most budgeting problems. Working on this type of case provides students with a greater understanding of both the flexibility of a master budget and of the information such a budget can provide to decision-makers. In addition, the case illustrates the incentives for budget padding, providing an opportunity to conduct a discussion of ethical budgeting and potential consequences in a rich context.
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