Vocabulary - Ch.22 Vocabulary Capital Expenditure Budget: A...

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Ch.22 Vocabulary Capital Expenditure Budget: A company’s plan for purchases of property, plant, equipment, and other long-term assets. Cash Budget: Details how the business expects to go from the beginning cash balance to the desired ending balance. Also called the statement of budgeted cash receipts and payments. Statement of Budgeted Cash Receipts and Payments: Details how the business expects to go from the beginning cash balance to the desired ending balance. Also called Cash Budget. Financial Budget: The cash budget (cash inflows and outflows), the budgeted period-end balance sheet, and the budgeted statement of cash flows. Management by Exception: Directs management’s attention to important differences between actual and budgeted amounts. Master Budget: The set of budgeted financial statements and supporting schedules for the entire organization. Includes the operating budget, the capital expenditures budget, and the financial budget. Operating Budget: Projects sales revenue, cost of goods sold, and operating expenses, leading to the budgeted income statement that projects operating income for the period. Responsibility Accounting: A system for evaluating the performance of each responsibility center and its manager. Responsibility Center: A part or subunit of an organization whose manager is accountable for specific activities. Sales Budget: A detailed plan that shows the estimated sales revenue for a future period.
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Ch. 23 Vocabulary Benchmarking: Using standards based on “best practice.” Best practice may be an internal benchmark or an external benchmark from other companies. Efficiency (quantity) Variance: Measure whether the quantity of materials or labor use to make the actual number of outputs is within the standard allowed for that number of outputs. This is computed as the difference in quantities (actual quantity of input used minus standard quantity of input allowed for the
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This note was uploaded on 06/04/2010 for the course ACC 202 taught by Professor Mirman during the Spring '08 term at University of Nevada, Las Vegas.

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Vocabulary - Ch.22 Vocabulary Capital Expenditure Budget: A...

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