Share ACCT4 Chp 8
Save to Folder
A detailed plan for the future that is usually expressed in formal quantitative terms.
Budget
A detailed plan showing how cash resources will be acquired and used over a specific time period.
Cash budget
The process of gathering feedback to ensure that a plan is being properly executed or modified as circumstances change.
Control
A detailed plan that shows the direct labor-hours required to fulfill the production budget.
Direct labor budget
A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.
Direct materials budget
A budget showing the dollar amount of unsold finished goods inventory that will appear on the ending balance sheet.
Ending finished goods inventory budget
A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period.
Manufacturing overhead budget
A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.
Master budget
A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.
Merchandise purchases budget
The process of establishing goals and specifying how to achieve them.
Planning
A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.
Production budget
A detailed schedule showing expected sales expressed in both dollars and units.
Sales budget
A method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by higher-level managers, and any issues are resolved by mutual agreement.
Self-imposed budget
A detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.
Selling and administrative expense budget
