Term
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Definition
| Developing goals and preparing various budgets to achieve those goals |
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Term
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Definition
| The steps taken by management to increase the likelihood that all parts of the organization are working together to achieve the goals set down at the planning stage |
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Term
| Responsibility Accounting |
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Definition
| The manager should be held responsible for those items--and only those items--that the manager can actually control to a significant extent |
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Term
| Continuous or Perpetual Budget |
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Definition
| 12 month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed |
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Term
Self-imposed Budget or
Participative Budget |
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Definition
| A budget that is prepared with the full cooperation and participation of managers at all levels |
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Term
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Definition
| Responsible for overall policy relating to the budget program and for coordinating the preparation of the budget itself |
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Term
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Definition
| Consists of a number of sperate but interdependent budgets that formally lay out the company sales, production, and financial goals |
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Term
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Definition
| First step in the budgeting process preparation, detailed schedule showing the expected sales for the budgeted period |
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Term
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Definition
| Detailed plan showing how cash resources will be acquired and used |
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Term
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Definition
| Prepared after the sales budget, lists the number of units that must be produced to satisfy sales needs and to provide the desired ending inventory |
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Term
| Merchandise Purchases Budget |
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Definition
| Shows the amount of goods to be purchased from suppliers during the period |
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Term
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Definition
| Details the raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories |
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Term
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Definition
| Shows the direct labor hours required the satisfy the production budget |
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Term
| Manufacturing Overhead Budget |
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Definition
| Lists all costs of production other than direct materials and direct labor |
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Term
| Ending finished goods inventory Budget |
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Definition
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Term
| Selling and administrative expense budget |
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Definition
| Budgeted expenses for areas other than manufacturing |
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