Chapter 8 Flashcards

1
Q

control

A

process of setting standards, receiving feedback on actual performance, and taking corrective action to improve it

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2
Q

purposes of budgeting

A

forces managers to plan
it provides resource info that can be used to improve decision making
sets a benchmark to improve upon
improves communication and coordination

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3
Q

budget committee

A

responsible for reviewing the budget

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4
Q

master budget

A

comprehensive financial plan for the year made up of various individual departmental and activity budgets

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5
Q

operating budgets

A

concernd with the income generating activities of a firm

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6
Q

financial budgets

A

concerned with the inflows and outflows of cash and with financial position

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7
Q

sales budget

A

the projection of expected sales

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8
Q

production budget

A

describes how many units must be produced in order to meet sales needs and satisfy ending inventory requirements
units to be produces = unit sales +desired End Inv-beg inv

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9
Q

direct materials purchases budget

A

based on the amount of materials needed for production and the inventories of direct materials
purchases = expected usage + desired ending inventory DM - Beg inv DM

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10
Q

direct labor budget

A

shows the total direct labor hours and direct labor cost needed for the number of units in production budget

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11
Q

Overhead budget

A

shows the expected cost of all indirect manufacturing items

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12
Q

ending finished goods inventory

A

supplies info needed for the BS and serves as an input for the preparation of the COGS budget

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13
Q

COGS budget

A

cogs budget

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14
Q

marketing expense budget

A

outlines planned expenditures for selling and distribution activities

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15
Q

administrative expense budget

A

consists of estimated expenditures for the overall organization and operation of the company

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16
Q

budgeted income statement

A

the ending product of the other budgets. it includes inputs from all of the other budgets