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Category > Management Posted 22 Feb 2018 My Price 9.00

City Savings Bank Inc.

Static budget for a service company

 

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, Trust, Commercial Loans, Mortgage Loans, Operations, Credit Card, and Branch Services. The static budget 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

Excess of actual over budget

 

 

$  12,000

a.     What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department manager?

b.     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?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Feb 2018 09:02 PM My Price 9.00

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