University:
York University
Course:
SB/ACTG 2020 | Management Accounting Concepts
Academic year:

2024
Views:

460

Pages:

1
Author:

Niklas

Topic 7: Chpt 9 (MCO. Sect Bfc) Financing budget allows the company to know where the money came from & where it will go. However, some timing issues can affect when to meet the cash, saved this, compares develop. Budgeting art of financing budgets that predict their cash flow thru a specific period Five major purposes Planning - process of creating a budget force the individuals to specify their resources that are required to put on organization to succeed Facilitating communication & coordination - organization must be efficient, each manager throughout the organization must be there made by her managers Allocating Resources - capital, and budgets provide Controlling Profits - operation budget is a plan which sets profits to targets. Nevertheless, & budget serves Evaluating performance & providing incentives - comparing actual results against budget, a manager can evaluate the performance of each division Budgeted financial statements is the final portion of the master budget and those Types of Budgets master budget provides production overhead budget selling and administrative expense budget includes capital budget plan financing budget rolling budget Sales forecasting chip in the budgeting process Major factors considered when forecasting past records general economic trends trend of the company & industry other factors expected to affect industry political and legal the intended pricing policy of the company new products or process introduced by the company or other firms Based on sales budget, company develops a set of operations budgets that specify how operations will be carried out to meet the demand for its goods or services Manufacturing budget