Sample Accounting Paper on Master Budget, Platypus Inc.

Introduction

I work for Platypus Inc. as a finance manager. The company has well-laid objectives of
offering services to the public. Platypus Inc. is a multinational corporation. It has decentralized
production point in different countries. Decentralization is done to cut down on operation ad
production costs. The organization, therefore, wins huge contracts from both governments and
private developers. The budget created is supposed to be used by the company to identify areas
of weakness and the main formal mandates. The budget will cover the manufacturing costs that
incurred; direct materials, direct labor, and variable manufacturing overhead, fixed
manufacturing overhead. The total production costs will, therefore, be obtained. In the end,
similar units are included.
This budget follows the provisions of various international financial institutions that hold
transparency policies. Public participation in budget formation and execution is equally essential.
For this reason, the budget will be availed for public review. The public scrutiny involves the
involvement of the citizens in determining the potential for unrealistic expectations, the timing of
the budget, the competitiveness of the chosen components, the inclusion of non-representative
participation and solving the "free rider" problem (Reid, 2016). First, the public has to see clear
paths for the use of their money and the company's expenditures. One of the main reasons for
transparency is to help achieve a common goal of development. By participating in the public
review, the extent to which decision makers would consider the public's advisory comments is
determined. If not considered, the effect of conventional expectations may not be achieved.

MASTER BUDGET, PLATYPUS INC. 3

The Budget

Q1
Budget Q1 Actual

Manufacturing costs:
Direct materials

$
19,000 $ 21,000

Direct labor

17,000 16,250

Variable mfg OH

22,200 21,000

Fixed mfg OH

2,000 3,200

Total manufacturing
costs

$
60,200 $ 61,450

Units

120,400 7,250

Q1
Budget

Q1 Flexible
Budget

Flexible
Budget
Range

Manufacturing costs:
Direct materials

$19,00
0 $ 21,750  $2750

Direct labor

$17,00
0  $17500  $500

Variable mfg OH

$22,20
0  $21100  $1100
Fixed mfg OH  $2,000  $3500  $1500
Total manufacturing
costs

$

60,200 $ 63,850  $3250

Units  5000

The Public Review

The Public is usually the primary recipients of policies that are made by organizations
and even their local governments. Therefore, they have to display greater confidence in the
budget. Platypus Inc. engages the public by providing a platform upon which the public is
consulted on the major components of the budget. Public review is in conformity with the
provisions of the World Bank and the International Monetary Fund. They require that

MASTER BUDGET, PLATYPUS INC. 4
governments and organization follow the exact budgeting process. The process has several
stages: The authorizations stage, the commitment stage, the verification stage, payment
authorization stage, payment stage, and the accounting stage. According to public participation
policies, timing is critical. Early consultations and involvement of the public in the budgeting
process will help boost the confidence in them would feel considered in the decision. The
company has recommended a public review of the budget for the sole reason that the there would
be zero corruption cases and embezzlement of funds.
The government and other civil society groups have to assess the engagement strategies
within the budget. If it outlined, then they are likely to be more unresponsive and uncooperative.
One reason for this would be that they perceive that the engagement strategies are a threat to
them. The budget formation process has to consider the public in such a way that they feel
empowered, in that their input is included with the main aim of achieving better outcomes and
meeting the requirements of ethics and universal laws. They will also increase the trust of the
public on them (Reid, 2016). The access to the information of the budget by the public is an
active strategy by the management. This would build a stronger relationship that is likely to
expand the opportunities of the organization in investment fields and a more realistic consensus.
Conclusion
In conclusion, Platypus Inc., an organization that deals in building construction run a huge
budget quarterly. It has several branches, some of which are located across national borders. As
the financial manager, I prepared the budget. According to the policy of the company, the
budgeting process has to undergo public review. Therefore, the company has gone through the
transparent budgeting process. The central point of it all is the public scrutiny when the

MASTER BUDGET, PLATYPUS INC. 5
corporation has to seek an early consultation with the public to help in developing clear
engagement strategies and to promote transparency. The provisions by the World Bank and the
IMF regarding public participation and the budgeting process consider the fact that the public has
to be convinced about the viability of the budget.

Reference

MASTER BUDGET, PLATYPUS INC. 6
Reid, Jonathan. "The effects of leadership styles and budget participation on job satisfaction and
job performance." Asia-Pacific Management Accounting Journal 3.1 (2016).