HIST 1402 Lecture Notes - Lecture 7: Operating Budget, Multiple Choice, Cost Driver
Document Summary
25 multiple choice and true/false question x 3 points each. 3 problems (ch 10, 11, and 12: details below) x 10 points each. A detailed plan for the future that is usually expressed in formal quantitative terms. Planning is used to develop goals and prepare budgets to help achieve those goals. Controlling is used to gather feedback and ensure that the plan is being executed properly or modified if need be. Operating budget: budget that covers a one-year period corresponding to the company"s fiscal year. Cuts the year into quarters, then the first quarter into months and the next three quarters are kept as only whole quarters. Advantages requires periodic review and reappraisal of budget data throughout the year. Continuous budget: (perpetual budget) 12 month budget that rolls forward one month (or quarter) as the current month (quarter) is completed.
