Super Papers Private Limited: preparation of operating budgets

Abstract

Learning outcomes Through this case, participants will be able to: ▪ understand the different approaches to preparing operating budgets; ▪ classify the costs based on traceability to its cost centres; ▪ understand the difference in budget preparation and its analysis under different cost centres; ▪ put together the required information, identify the format and prepare major operating budgets; and ▪ evaluate operating budgets and give suggestions to the company based on budget analysis. Case overview/synopsis This case is about a manufacturing company that is going to introduce a budgeting system. It highlights the process of information collecting from key employees for budget preparation. This case also deals with various decisions to be made during the implementation of the new system such as the context of budgets, cost units and sequence of budgets.This case will help students to enhance their understanding of the operating budgets. The students will able to visualize the difficulty faced by companies to implement a new system. Complexity academic level This case is applicable in the courses such as Master of Business Administration, Master of Commerce or other postgraduate studies. This can also be discussed in professional courses such as Chartered Accountants, Certified Management Accountants, Company Secretaries, Institute of Cost and Works Accountants of India and Chartered Financial Analysts. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 1: Accounting and Finance.