ACTG 2020 Chapter Notes - Chapter 9: Finished Good, Cash Flow, Deutsche Luft Hansa
9 Dec 2013
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Document Summary
A budget is a quantitative plan for the acquisition and use of financial and other resources over a specified future time period. Using budget to control activities budgetary control. Master budget is a summary of a company"s plans that sets specific targets for sales, production, distribution, and financing activities. Serve as planning and control tool in orgs. Planning involves developing objectives and preparing various budgets to achieve these objectives. Control involves the steps taken by management to achieve objectives developed at the planning stage are attained and to ensure that all parts of the organization function properly. Good planning without effective control is wasted and unless plans are laid down in advanced, no objectives toward which control can be directed. Important to analyze alternatives being considered before consuming resources to implement them. Basic idea behind responsibility accounting is that managers should be held responsible for those items and only those items that they can actually influence.
