The Design, Implementation, and Analysis of Budgeting for Cost Control Purposes in a Small Manufacturing Plant

Author

Cheryl Lynn Hutchcraft, Fontbonne College

Year of Award

1987

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business

Department

Business Administration

Keywords

Certified Management Accountants, CMA, Budgets, Budgeting, Variances

Abstract

The proposed thesis focuses on the issue of critical importance to the plant controller: designing, implementing and analyzing the plant budgets to effectively control expenditures and increase profitability.

Top management must commit themselves to the notion that success through budgeting requires involvement from all levels of management. In addition, expertise must be acquired to provide the proper analysis of budget variances. Therefore, the hiring of Certified Management Accountants (CMA's) is becoming increasingly desirable.

Budgets should be used to build linkages to connect a firm's long term, medium range, and short term goals. These linkages must be rigid enough to encourage strict adherence, while at the same time retain the ability to react with changing market conditions, thus preventing stagnation.

The purpose of my thesis is to develop a methodology for the development, implementation, and analysis of budgeting for cost control purposes in a small manufacturing plant. This methodology is intended for the edification of an entry level accountant with limited prior "hands on" experience.

The design methodology will include the types of budgets that are interrelated and the development of each. The implementation methodology will include the motivational and communicative aspect of the budget. And finally, the analysis methodology will include the causes, implications, and measures for corrective action.

Document Type

Restricted Thesis

Recommended Citation

Hutchcraft, Cheryl Lynn, "The Design, Implementation, and Analysis of Budgeting for Cost Control Purposes in a Small Manufacturing Plant" (1987). All Theses, Dissertations, and Capstone Projects. 591.
https://griffinshare.fontbonne.edu/all-etds/591