Term
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Definition
| a detailed plan for the acquisition and use of financial and other resources over a specified time period. |
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Term
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Definition
| A group of key managers who are responsible for overall policy matters relating to the budget program and for coordinating the preparation of the budget. |
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Term
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Definition
| a detailed plan showing how cash resources will be aquired and used over a specific time period. |
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Term
| Continuous budget(perpetual budget) |
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Definition
| a 12 month budget that rolls forward one month as the current month is complete. |
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Term
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Definition
| those steps taken by management to increase the likelihood that the objectives set down at the planning stage are attained and that all parts of the organization are working together toward the goal. |
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Term
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Definition
| a detailed plan showing labor requirements over a specific time period. |
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Term
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Definition
| a detailed plan showing the amount of raw materials that must be purchased during a period to meet both production and inventory needs. |
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Term
| Ending finished goods inventory budget |
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Definition
| a budget showing the $ amount of unsold finished goods inventory that will appear on the ending balance sheet. |
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Term
| manufacturing overhead budget |
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Definition
| a detailed plan showing the production cost, other than direct material and direct labor, that will be incurred over a specific time period. |
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Term
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Definition
| a summary of a company's plan in which specific targets are set for sales, production, distribution, and financing activities and that generally culminates in a cash budget, budgeted income statement, and budgeted balance sheet. |
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Term
| material requirements planning(MRP) |
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Definition
| an operations management tool that uses a computer to help manage materials and inventory. |
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Term
| merchandise purchases budget |
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Definition
| a budget used by a merchandising company that shows the amount of goods that must be purchased from suppliers during a period. |
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Term
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Definition
| developing objectives and preparing budgets to acheive those objectives. |
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Term
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Definition
| a detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs. |
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Term
| responsibility accounting |
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Definition
| a system of accountability in which managers are held responsible for those items of revenue - and only those items - over which the management can exert significant control. The managers are held responsible for differences between budgeted and actual results. |
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Term
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Definition
| a detailed schedule showing the expected sales for coming periods; these sales are typically expressed in both dollars and units. |
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Term
| Self-imposed Budget(participative budget) |
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Definition
| a method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by the manager's supervisor, and any issues are resolved by mutual agreement. |
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Term
| selling and administrative expense budget |
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Definition
| a detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period. |
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Term
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Definition
| a method of budgeting in which managers are required to justify all costs as if the programs involved were being propesed for the first time. |
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