L4

Question 1

What is a budget?

Answer 1

Is a detailed plan for the acquisition and use of financial and other resources over a specific period of time (year.. in order to accomplish to org.’s objectives)

Question 2

operating budgets

Answer 2

plans for all phases of operations including production, purchasing, personell and marketing budgets

Question 3

financial budgets

Answer 3

identify sources and uses of funds for budgeted operations and capital expenditures

Question 4

master budget

Answer 4

comprehensive expression of operating and financial plans for a future time period (one year) summarized in a set of budgeted financial statements

Question 5

sales budget

Answer 5

shows forecasted sales and has two components (sales volume and selling price)

Question 6

Why do we need budgeting?

Answer 6

Decision making (before the fiscal year), decision-control (after the fiscal year)

Question 7

budgetary slack

Answer 7

underestimating budgeted revenues, or overestimating budgeted expenses, in an effort to make the resulting budgeted goals more easily attainable