Acct 102 Chap 7

Acct 102 Chap 7 - Acct 102 Chap 7 Budgeting is a form of...

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Acct 102 – Chap 7 Budgeting is a form of planning that formalizes a company’s goals and objectives in financial terms. Budgeting helps set realistic standards to serve as a benchmark for evaluating performance, coordinating activities and help managers to plan ahead. The budget committee is a group of individuals responsible for coordinating budgeting activities. It normally consists of upper-level managers including the president, the vice presidents of marketing, production, purchasing, finance, and the controller. The capital budget is a budget that describes the company’s plans regarding investments, new products, or lines of business for the coming year. It is used as input to prepare many of the operating budgets and becomes a formal part of the master budget. A cash budget details expected future cash receipts and payments, including cash receipts from revenues, cash payments for inventories, cash payments for general selling and administrative expenses, and anticipated financing activities. The
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This note was uploaded on 03/31/2011 for the course ACCT 102 taught by Professor Wang during the Spring '11 term at Adelphi.

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