Accounting 2242-assignment 4 solution

Accounting 2242-assignment 4 solution - Accounting 2242.1...

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Accounting 2242.1 Assignment 4 Due date: June 14, 2006 Question 1-Definitions Provide definitions for the following: Master budget – A summary of a company’s plans in which specific targets are set for sales, production, distribution, and financing activities. Responsibility Accounting – A system of accountability in which managers are held responsible for those items of revenue and cost- and only those items – over which the manager can exert significant control. The managers are held responsible for differences between budgeted and actual results. Participative budget – 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. Zero base budget – A method of budgeting in which managers are required to justify all costs as if the programs involved were being proposed for the first time. Cash budget – A detailed plan showing how cash resources will be acquired and
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Accounting 2242-assignment 4 solution - Accounting 2242.1...

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