RSM222H1 Lecture Notes - Lecture 8: Indian Railways
2 Apr 2017
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Document Summary
Master budget contains two types of budgets: operating and financial budgets. Production budget units need to be purchased to meet. Budgeted sales units + desired ending finished beginning finished goods units = required production units. Budget serves as a benchmark in order to evaluate performance. Static budget (only prepares budget for the fiscal 12 months) Continuous budget (rolling/dynamic budget when we close one month, we have to add another month to the end of the budget) -> too much effort to have it. Participative (self-imposed) budget - supervisor provides info on their cost and they pass the information to the next level and info is reviewed and consolidated and passed to top management. Zero-based budgeting requires managers to justify all budgeted expenditures, not just changes in the budget from the prior year (every single number has to be justified, building budget from scratch) Dm, dl, manufacturing o/h budgets are operating budgets.
