Objectives of Master Budgets Paper

December 7, 2022

Objectives of Master Budgets Paper

Order Number	636738393092
Type of Project	ESSAY
Writer Level	PHD VERIFIED
Format	APA
Academic Sources	10
Page Count	3-12 PAGES

Instructions/Descriptions

Objectives of Master Budgets Paper

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Read Case 13-4. How would a master budget support the three objectives of planning, directing and control for Domino’s?

Submission Instructions:

Your initial post should be 200-300 words, formatted and cited in current APA style.

You should respond to at least two of your peers by extending, refuting/correcting, or adding additional nuance to their posts.

Objectives of the master budget Domino’s Pizza L.L.C. operates pizza delivery and carry-out… 1 answer below » Objectives of the master budget Domino’s Pizza L.L.C. operates pizza delivery and carry-out restaurants. The annual report describes its business as follows: We offer a focused menu of high-quality, value-priced pizza with three types of crust (Hand- Tossed, Thin Crust, and Deep Dish), along with buffalo wings, bread sticks, cheesy bread, CinnaStix ® , and Coca-Cola ® products.

Our hand-tossed pizza is made from fresh dough produced in our regional distribution centers. We prepare every pizza using real cheese, pizza sauce made from fresh tomatoes, and a choice of high-quality View complete question » Objectives of the master budget Domino’s Pizza L.L.C. operates pizza delivery and carry-out restaurants.

The annual report describes its business as follows: We offer a focused menu of high-quality, value-priced pizza with three types of crust (Hand- Tossed, Thin Crust, and Deep Dish), along with buffalo wings, bread sticks, cheesy bread, CinnaStix ® , and Coca-Cola ® products.

Our hand-tossed pizza is made from fresh dough produced in our regional distribution centers. We prepare every pizza using real cheese, pizza sauce made from fresh tomatoes, and a choice of high-quality meat and vegetable toppings in generous portions. Our focused menu and use of premium ingredients enable us to consistently and efficiently produce the highest-quality pizza. Over the 41 years since our founding, we have developed a simple, cost-efficient model.

We offer a limited menu, our stores are designed for delivery and carry-out, and we do not generally offer dine-in service. As a result, our stores require relatively small, lower- rent locations and limited capital expenditures. How would a master budget support planning, directing, and control for Domino’s?

Post by classmate 1

Domino’s Pizza can use a master budget to plan all its operations based on sales forecast made by the Sales Department. This sales forecast is useful to elaborate both the sales budget and the production budget, and both would be identical since Domino’s does not currently have a “finished goods inventory”. Both budgets can also be used to elaborate the direct labor budget, that is, salaries for cooks, drivers who deliver pizzas, wages for people that make the dough.

Furthermore, both budgets can be used to elaborate direct material purchases budget, that is, all the ingredients needed to make pizzas, the packaging in which they will be delivered, drinks, and so on. Moreover, overhead budget shall include rent, salaries for management, insurance, etc. Assuming that drivers own their own vehicles, depreciation and maintenance for those are not included in the overhead budget.

Individual restaurants can use the budget process to coordinate and direct all operations. That way managers will know that each restaurant is working under the same assumptions on the budgets. Thus, the operations of the whole company and each restaurant can be controlled, and feedback will be made when needed. Finally, feedback can be used to adjust any production cost if the sales drop or rise. This would prevent the company (and each restaurant) from having made any unnecessary direct material purchase if sales drop, or having a shortage in food due to sales rising.

Reference

Warren, Carl S (2018). Survey Of Accounting 8e. Chapter 13 Budgeting and standard costs. Pages 553-559

Post by classmate 2

A master budget is a necessary planning tool for businesses and corporations. The master budget is used by the management team to direct the activities of the corporation and judge the performance and goal-meeting of all of its responsible teams and departments. The master budget is a one-year document that encompasses all other budgets (Carlson, 2019) including the operational budget and financial budget.

American pizza chain Domino’s relies on a simple model of business with a limited menu and small stores to cut overhead costs. This model has allowed Domino’s to pass its savings on to consumers in the form of numerous deals for ordering pizza and other food. In its budgetary planning, a master budget would serve the business well for planning, directing, and control. In order to keep track of its lower costs, a mater budget help as it includes the direct materials, labor, and overhead within the operating budget.

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Domino’s also boasts low capital expenditures, and these are recorded on the master budget. The company can use the master budget to state the budgetary figures for all of its larger and expensive fixed assets such as rent and utilities. Using a master budget also allows Domino’s to evaluate how the company has performed in the past during the planning period, for which the budget is also effective.

Other parts of the master budget include a budgeted balance sheet, which shows the ending balances of all of its liability, asset, and equity accounts, and the cash budget, stating cash inflows, outflows, borrows, and investments. A master budget would benefit Domino’s since it allows for a visual and formal representation of its limited store and capacity model. The company would have much to keep up with, but it would be laid out in a simple and defined way with a master budget.

Reference

Carlson, R. (2019, September 9). How to Prepare a Master Budget for Your Company. Retrieved April 20, 2020, from https://www.thebalancesmb.com/budgeting-what-is-a-master-budget-393049.

Objectives of Master Budgets Paper

RUBRIC

Excellent Quality

95-100%

Introduction

45-41 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Literature Support

91-84 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Methodology

58-53 points

With titles for each slide as well as bulleted sections to group relevant information as required, the content is well-organized. Excellent use of typeface, color, images, effects, and so on to improve readability and presenting content. The minimum length criterion of 10 slides/pages is reached.

Average Score

50-85%

40-38 points

More depth/information is required for the context and importance, otherwise the study detail will be unclear. There is no search history information supplied.

83-76 points

There is a review of important theoretical literature, however there is limited integration of research into problem-related ideas. The review is just partly focused and arranged. There is research that both supports and opposes. A summary of the material given is provided. The conclusion may or may not include a biblical integration.

52-49 points

The content is somewhat ordered, but there is no discernible organization. The use of typeface, color, graphics, effects, and so on may sometimes distract from the presenting substance. It is possible that the length criteria will not be reached.

Poor Quality

0-45%

37-1 points

The context and/or importance are lacking. There is no search history information supplied.

75-1 points

There has been an examination of relevant theoretical literature, but still no research concerning problem-related concepts has been synthesized. The review is just somewhat focused and organized. The provided overview of content does not include any supporting or opposing research. The conclusion has no scriptural references.

48-1 points

There is no logical or apparent organizational structure. There is no discernible logical sequence. The use of typeface, color, graphics, effects, and so on often detracts from the presenting substance. It is possible that the length criteria will not be reached.