ACC 113 Chapter Notes - Chapter 14: Participatory Budgeting, Budget, Enterprise Resource Planning

• School: Tunxis Community College
• Department: Accounting
• Course: ACC 113
• Professor: Lardie

Document Summary

Budgeting is a management task, not a bookkeeping task and requires great deal of planning and thoughtful input from a broad range of managers in a company. Budgeting is an integral part of mangers" planning, operating and control activities. More and more companies are using enterprise resource planning (erp) systems as a key budgeting tool which links data across all areas of a business, ensuring same assumptions are used throughout different budgets and speeding up budgeting process. Companies can start budget process based on last year"s numbers or zero-based budgeting. Zero-based budgeting requires managers to build budgets form the ground up each year rather than a percentage increase to last year"s numbers. Must justify all items in budget not just changes from last year"s budget. May only be required every few years or rotate among departments. Companies frequently use monthly budgets and rolling 12-month budgets to provide mechanism for adjusting items in response to unforeseen circumstances.