ACC 117 Lecture Notes - Lecture 15: Finished Good

• School: Tunxis Community College
• Department: Accounting
• Course: ACC 117
• Professor: Muccino

Document Summary

The master budget is the comprehensive financial plan for the organization as a whole. Typically the master budget is for a one year period corresponding to the fiscal year of the company. Yearly budgets are broken down into quarterly and monthly budgets. Resolves differences that arise as the budget is prepared. Operational budget: describe the income generating activities of a firm. Financial budgets: detail the inflows and outflows of cash and the overall financial position. Sales budget production budget dm purchases budget direct labour budget overhead budget ending finished goods inventory budget ending finished goods inv budget cogs budget selling and admin expense budget. This is the responsibility of the marketing department. The forecast is reviewed by the budget committee. The budget committee recommends changes prior to approval. The production budget describes how many units must be produced in order to meet sales needs and to satisfy ending inventory requirements. Used for retail firms instead of a production budget.