COMM 294 Chapter Notes - Chapter 9: Root Mean Square, Customer Satisfaction, Income Statement
Document Summary
Comm294 - chapter 9 - budgeting and responsibility accounting. Budgets are used to help plan for the future and control the revenues and expenses related to those plans (develop strategy, plan (budget), act, control,repeat) The rst step is to create long-term strategic goals. Once goals are set, management designs key strategies for attaining goals. The goals are then put into place through shorter-term budget. Then it is budgeted for month (companies prep budget for every month of the scal year) A rolling budget is a budget that is continuously updated for next 12 months. Participative budget is a top down approach to have many levels of management participate in budgeting because this helps motivate them and provides the knowledge needed to accurately budget for each step of the budget. Once this is done, there is usually a budget committee to review the submitted budget. Use prior years budgeted/actual results to be modi ed to re ect:
