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ACC 102 · Unit 4 of 6

Planning and Budgeting

Managerial Accounting and Control

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Learning objectives

After completing this unit, you will be able to:

  • to business decisions
  • Apply the frameworks in "Planning and Budgeting" to a real management decision
  • Make progress on your Managerial Accounting and Control executive memo applied project

Why this matters

Planning and Budgeting is essential to Managerial Accounting and Control. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 5 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Managerial Accounting and Control executive memo. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Planning and Budgeting"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Managerial Accounting and Control executive memo?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • to business decisions
  • Business concepts only matter when they change a decision.
  • Your ACC 102 assessment (Cost concepts, budgeting, variance analysis, and decision-relevant costing for managers.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Planning and Budgeting45 min
Complete a focused practice exercise on **Planning and Budgeting**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ACC 102.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Planning and Budgeting30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ACC 102 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Model / spreadsheet

Build or extend a spreadsheet model tied to this unit.

ModelSpreadsheet model: Planning and Budgeting60 min
Build a spreadsheet model demonstrating **Planning and Budgeting**. **Requirements:** - Separate Input, Calculation, and Output sections - Label all units ($, %, units) - Include at least one sensitivity or scenario comparison - Add a balance check or reasonableness test Use Google Sheets or Excel. Link the model to your Managerial Accounting and Control executive memo project where applicable.

Deliverable

Spreadsheet file with Inputs / Model / Outputs tabs · One-paragraph summary of key insight from the model · Screenshot or export saved to portfolio

Rubric

  • • Assumptions stated explicitly
  • • Logic is auditable (formulas or steps visible)
  • • Output answers a specific business question
  • • Sensitivity or scenario considered

Knowledge quiz

Check your understanding before marking the unit complete.

1. Northwind's master budget chains sales forecast to production, materials, labor, OH, ending inventory, COGS, S&A, and pro forma statements. A 2% sales forecast error primarily risks:

2. April club-store shipments require Omaha to schedule 22 production days in March. Which budget document directly translates case demand into machine days?

3. Northwind reports a profitable quarter but breaches a loan covenant. Which cash-budget item best explains the gap?

4. Fresno budgeted 650,000 sauce units but produced 620,000. Rent is fixed; tomato paste cost is variable. How should March performance be judged?

5. A static budget shows $3.2M fixed manufacturing overhead and 310,000 bowl units. Variable overhead is $0.42 per unit. Actual volume is 290,000 units. What is the flexible budget allowance for total manufacturing overhead?

6. Northwind updates an 18-month rolling forecast quarterly while keeping the annual board budget. What is the primary purpose of the rolling forecast?

7. Direct materials purchases budget must account for desired ending inventory and beginning inventory. Omaha needs 400,000 cases in April production. Beginning RM inventory covers 30,000 cases; desired ending covers 45,000 cases. How many case-equivalents must be purchased?

8. Priya posts a cash budget showing Q3 capital for Columbus line upgrades alongside depreciation add-backs. Maria asks why depreciation appears in cash planning. Best answer?

Next unit: Performance Measurement and Control →