ACCT 2101 Chapter : Chapter 8 Notes WLP
Document Summary
Used as a planning and communication tool for management: benefits. Facilitates the coordination of activities; results in greater management awareness of the overall operations. Creates an early warning system for potential problems. Motivates personnel to meet planned objectives and can be used to reward employees performance: behavioral effects of budgets. Using slack when there are large fluctuations that are out of the managers control. Continuous (rolling budget) budgets that extend a certain period into the future. When one period ends another is automatically added at the end. The individual budgets that will impact the preparation of the budgeted balance sheet: cash budget works like a checkbook , cash collections (receipts, cash payments (disbursements, capital expenditures chapter 11, budgeted balance sheet. Sales budget - 1st prepared and starts with a sales forecast. Generally stated in terms of units and sales price per unit. Prepared by multiplying the expected unit sales volume for each product by its anticipated unit selling price.
