2000
2001
2002
This budget is usually a twelve-month budget that rolls forward one month as the current month is completed.
Participative Budget System
Top Management
A) responsibility accounting. B) contribution accounting. C) absorption accounting. D) operational budgeting.
Choosing the Budget Period
Operating Budget
Means of allocating resources
Respoቤተ መጻሕፍቲ ባይዱsibility Accounting
Managers should be held responsible for those items — and only those items — that
the manager can actually control to a significant extent.
C. It ensures that accounting records comply with generally accepted accounting principles.
D. It provides benchmarks for evaluating subsequent performance.
Planning
Work of Management
Directing and Motivating Controlling
Planning and Control
?Planning -involves developing objectives and preparing various budgets to achieve these objectives.
Middle Management
Middle Management
Supervisor Supervisor Supervisor Supervisor
Flow of Budget Data
The Budget Committee
A standing committee responsible for
A) operational budgeting. B) zero-based budgeting. C) continuous budgeting. D) responsibility accounting.
Zero-Base Budgeting
Managers are required to justify all budgeted expenditures, not just changes in the budget from the previous year. The baseline is zero rather than last year's budget.
?Control -involves the steps taken by management that attempt to ensure the objectives are attained.
Which of the following is not a benefit of budgeting?
Advantages of Budgeting
Communicating plans
Define goal and objectives
Coordinate activities
Advantages
Uncover potential bottlenecks
Think about and plan for the future
Fairmont Inc. uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs. For example, if the sales manager accepts a rush order that will result in higher than normal manufacturing costs, these additional costs are charged to the sales manager because the authority to accept or decline the rush order was given to the sales manager. This type of accounting system is known as:
1999
2000
The annual operating budget may be divided into quarterly
or monthly budgets.
2001
2002
Choosing the Budget Period
Continuous or Perpetual Budget
1999
A. It uncovers potential bottlenecks before they occur.
B. It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts.
?overall policy matters relating to the budget ?coordinating the preparation of the budget
A method of budgeting in which the cost of each program must be justified every year is called: