ADM 2341 Lecture Notes - Lecture 25: Cellular Manufacturing, Income Statement

• School: University of Ottawa
• Department: Administration
• Course: ADM 2341
• Professor: Abdenour Slaouti

Document Summary

> in sales forecasting, various factors are considered: (1) general economic conditions, (2) industry trends, (3) market research studies, (4) anticipated advertising and promotion, (5) previous market share, (6) changes in prices, and (7) technological developments. >in larger companies, responsibility for coordinating the preparation of the budget is assigned to a budget committee. > in developing the budget, each level of management should be invited to participate. > budgetary slack = when managers intentionally underestimate budgeted revenues or overestimate budgeted expenses in order to make it easier to achieve budgetary goals. > the maximum length of a budget is usually one year, and budgets are often prepared for shorter periods of time, such as a month or quarter. >long-range planning usually covers a period of at least five years. > budgeting focuses on achieving specific short- term goals, such as meeting annual profit objectives.