Chapter 8 - Finance Flashcards
1
Q
What is top-down budgeting?
A
Top management prepares the budget with little or no input from middle and supervisory managers.
2
Q
What is bottom-up budgeting?
A
Allows middle and supervisory managers to actively participate in the creation of budget.
3
Q
What is operating budgets?
A
identify sales and production goals.
- sales budget
- production budget
- direct labour budget
4
Q
what is financial budgets?
A
Focus on the firm’s financial objectives
- cash budget
- capital budget
5
Q
List some examples of short term budgeting?
A
- trade credit
- factoring
- short-term bank loans
- commercial paper
6
Q
List some examples of long-term budgeting
A
- Direct investment from owners
- Long-term debt credit
- term loans
- corporate bonds
