BUS 254 Chapter Notes - Chapter 8: Sales Operations, Budget, Financial Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Masood Kamlani

Document Summary

Chapter 8: purposes of budgeting systems (page 307) Budget: a detailed plan, expressed in quantitative terms, that specifies how resources will be acquired and used during a specified period of time. Evaluating performance and providing incentives (page 307: types of budgets (page 308) Master budget/ profit plan : a comprehensive set of budgets covering all phases of an organization"s operations for a specified period of time. Budgeted financial statements/pro forma financial statements: show how the financial statements will appear at a specified time if operations proceed according to plan. Include a budged income statement, balance sheet, and statement of cash flows. Capital budget: a plan for the acquisition of capital assets. Financial budget: a plan that shows how the organization will acquire its financial resources. Rolling budgets: continually updated by periodically adding a new incremental time period: the master budget: a planning tool (page 308)