ACCT 2230 Lecture Notes - Lecture 7: Finished Good, Income Statement
27 Dec 2015
School
Department
Course
Professor
Document Summary
Summary of a company"s plans in which speci c targets are set for sales, production, distribution, administrative, and nancing activities; it generally culminates in a cash budget, a budgeted income statement, and a budgeted balance sheet. Machines, activities, or processes that limit total output because they are operating at capacity. A system of accountability in which managers are held responsible for those items of revenue and cost over which they can exert signi cant in uence - and only those items. Managers are held responsible for differences between budgeted and actual results. A 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is complete. It keeps managers focused at least one year ahead so that they don"t become too narrowly xated on short-term results. A method of preparing budgets in which managers prepare their own budget estimates.
