ACC 330 Lecture Notes - Lecture 13: Sensitivity Analysis, Financial Statement
Document Summary
The cost flow example used earlier has an ending credit balance of in manufacturing. A budget generally includes both the plan"s financial and nonfinancial aspects and serves as a blueprint for the company to follow in an upcoming period. Communicate directions and goals to different departments of a company to help them coordinate the actions they must pursue to satisfy customers and succeed in the marketplace. Judge performance by measuring financial results against planned objectives, activities, and timelines to learn about potential problems. The master budget is at the core of the budgeting process. It expresses management"s operating and financial plans for a specified period: Operating decisions deal with how to best use the limited resources of an organization. (the operating budget) Financial decisions deal with how to obtain the funds to acquire those resources. (the financial budget) Promotes coordination and communication among subunits within the company.
