ADM 2341 Lecture Notes - Lecture 7: Finished Good, Accounts Payable, Financial Statement

• School: University of Ottawa
• Department: Administration
• Course: ADM 2341
• Professor: Robert Bergquist

Document Summary

Planning and control attained: a budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period. The act of preparing a budget is called budgeting. The use of budgets to control an organization"s activity is known as budget control. Planning involves developing objectives and preparing various budgets to achieve these objectives: control involves the steps taken by management that attempt to ensure the objectives are. Advantages of budgeting: define goal and objectives, coordinate activities, means of allocating ressources, uncover potential bottlenecks. Think about and plan the future: communicate plans. Managers should be held responsible for those items, and only those items, that the manager can actually control to a significant extent. The annual operating budget may be divided into quarterly or monthly budgets: a continuous budget is a 12-month budget that rolls forward one month (or quarer) as the current month (or quarter) is completed.