General Business ACC212 Chapter Notes - Chapter 10: Income Statement
29 Nov 2017
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Document Summary
State the essentials of effective budgeting and the component of a mater budget. Prepare budgets for sales, production and direct materials. Prepare budgets for direct labour, manufacturing overhead, and selling and administrative expenses and a budgeted income statement. Prepare the cash budget and the budgeted balance sheet. Explain the applicability of budgeting in non-manufacturing companies. A formal written statement of management"s plans for a specified. Primary way to communicate agreed-upon objectives to all parts of future time period, expressed in financial terms. Control device - important basis for performance evaluation once adopted. Historical accounting data on revenues, costs, and expenses help in. Accountants are normally responsible for presenting management"s management"s responsibility. The budget and its administration are, however, entirely budgeting goals in financial terms. Requires all levels of management to plan ahead and formalize goals. Provides definite objectives for evaluating performance at each level of responsibility. Creates an early warning system for potential problems.
