ADM 2341 Lecture Notes - Lecture 9: Budget, Sales Operations, Income Statement

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

Document Summary

A budget is a quanitaive plan for the acquisiion and use of inancial and other resources over a speciied future period of ime. Master budget: is a summary of a company"s plans that sets speciic targets for sales, producion, distribuion, and inancing aciviies. The paricipaive budget: a method of preparing budgets in which managers prepare their own budget esimates. These budgets esimates are then reviewed by the manager"s supervisor, and any issues are resolved by mutual agreement, leading to a completed budget. Budgetary slack: the diference between the revenues and expenses a manager believes can be achieved and the amounts included in the budget. Slack will exist when revenue budgets are intenionally set below expected levels and expense budgets are set above expected levels. Zero based budget: a method of budgeing in which managers are required to jusify all costs as if the programs involved were being prosed for the irst ime.