ACCT 2000 Chapter : Ch 21 Notes
Document Summary
What is a budget: a formal ___written__ statement of management"s plans for a specified. ___future___ time period, expressed in financial terms: promotes efficiency and is a primary way to communicate agreed-upon objectives to all parts of the company, __control device__ - important basis for performance evaluation once adopted. Participative budgeting: risk of unreliable budgets greater when they are ___top chain__. ____budgetary slack___ refers to managers using the budget to foster gaming by intentionally underestimating budgeted revenues or overestimating budgeted expenses so that budget goals are easier to meet. The budgeting process: base budget goals on past performance, collect data from organizational units, begin several months before end of current year. (sept/oct, develop budget within the framework of a ____sales forecast__. The master budget: a set of _________interrelated_______ budgets that constitutes a plan of action for a specified time period, contains two classes of budgets: _____operating____ and.
