ACC 406 Chapter 9: ACC406 - Chapter 9: Budgeting, Production, Cash, and Master Budget (Textbook Notes)
2 Nov 2016
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Acc406 - chapter 9: budgeting, production, cash, and master budget (textbook notes) Planning and control are linked: planning is looking ahead to see what actions should be taken to realize particular goals, control is looking backward, determining what happened, and comparing it with the previously planned outcomes. This comparison can then be used to adjust the budget, looking forward once more. Budgets are financial plans for the future and are a key component of planning: they identify objectives and the actions needed to achieve them, before a budget is prepared, an organization should develop a strategic plan. The strategic plan identifies strategies for future activities and operations, generally covering at least five years. The overall strategy is then translated into long- and short-term objectives that form the basis of the budget. The budget and the strategic plan should be tightly linked.
