ACCT 2230 Chapter Notes - Chapter 9: Finished Good, Budget

21 views4 pages

Document Summary

Budget: a detailed plan for the acquisition & use of financial & other resources over a specified time period. Master budget: a summary of the company"s plans that sets specific targets for sales production, distribution, & financing activities. Budgets serve as a planning & control tool in organizations. Planning involves developing objectives & preparing various budgets to achieve objectives. Control involves the steps taken by management to increase likelihood that developed objectives will be achieved. Budgeting allows time to analyze the situation on paper before consuming the resources necessary. Advantages of budgeting: provide means of communication of managements plans throughout company, force managers to think about plan for the future. 3: uncovers potential bottlenecks (machine, process etc. that limits total output b/c it is operating at. Provides means of allocating resources to those parts where they will be use most effectively capacity) before they occur. Define goals & objectives and serve as benchmarks for evaluating performance.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions