Class Notes (809,630)
Canada (493,757)
York University (33,568)
ADMS 2510 (64)

Chapter 9.docx

2 Pages
Unlock Document

York University
Administrative Studies
ADMS 2510
Alison Beavis

Chapter 9 Master budget: A summary of a company's plans in which specific targets are set for sales, production, distribution, and financing activities; it generally culminates in a cash budget, a budgeted income statement, and a budgeted balance sheet.  Budgets serve as both a planning tool and a control tool in organizations.  Planning involves developing objectives and preparing various budgets to achieve these objectives.  Control involves the steps taken by management to increase the likelihood that the objectives developed at the planning stage are attained and to ensure that all parts of the organization function in a manner consistent with organizational policies. Bottleneck: A machine, activity, or process that limits total output because it is operating at capacity. Responsibility accounting: A system of accountability in which managers are held responsible for those items of revenue and cost over which they can exert significant influence-and only those items. Managers are held responsible for differences between budgeted and actual results. A continuous or perpetual budget is a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. In other words, one month (or quarter) is added to the end of the budget as each month (or quarter) comes to a close. Participative budget: A method of preparing budgets in which managers prepare their own budget estimates. These budget estimates are then reviewed by the manager's supervisor, and any issues are resolved by mutual agreement, leading to a completed budget. Budgetary slack: The difference 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 intentionally set below expected levels and expense budgets are set above expected levels. Budget committee: A group of key management personnel responsible for overall policy matters related to the budget program, coordinating the preparation of the budget, handling disputes related to the budget, and approving the final budget. Stretch budget: A budget that is highly difficult to achieve. Attainment of stretch budgets often requires considerable changes to the way task activities are performed.
More Less

Related notes for ADMS 2510

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.