A bank manager of City Savings Bank, Inc. uses the managerial accounting system to track the costs
Question:
A bank manager of City Savings Bank, Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trusts, Commerical Loans, Mortgage Loans, Operations, Credit Card, and Branch Services. The static budet and actual results for the Operations Department are as follows:
Resources | Budget | Actual |
Salaries | $200,000 | $200,000 |
Benefits | 30,000 | 30,000 |
Supplies | 45,000 | 42,000 |
Travel | 20,000 | 30,000 |
Training | 25,000 | 35,000 |
Overtime | 25,000 | 20,000 |
Total | $345,000 | $357,000 |
Excesses of actual over budget | $12,000 |
In a 1 page word document, answer the following questions:
What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department Manager?
What information does the static budget fail to provide? Specifically, could the budget information be presented differently to provide even more insight for the bank manager?
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren