Chap9gnposting - Chapter 9: Profit Planning What is...

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Chapter 9: Profit Planning 37 Chapter 9: Profit Planning What is budgeting? Detailed quantitative plan for acquiring and using financial and other resources to assist management in its planning and control responsibilities. Terminology: Budget period Operating budget The focus of Chapter 9 Annual, quarter, month Continuous Capital budget The focus of Chapter 14 Budget Committee Involves the whole organization (not just the accountants) Self-imposed or participative budget more beneficial than top-down Involves the whole organization Can be more accurate Facilitates commitment and accountability Zero-based budgeting valuable periodically (every 3-5 years) Requires justification of all numbers More time consuming than just looking at last year’s data and adjusting
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Chapter 9: Profit Planning 38 Preparing a Master Budget Budgeted Financial Statements Sales Budget Ending Inventory Budget Production Budget Direct Materials Budget Direct Labor Budget Cash Budget Capital Budget
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This note was uploaded on 05/28/2011 for the course ACC 272 taught by Professor Bird during the Spring '08 term at University of Michigan.

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Chap9gnposting - Chapter 9: Profit Planning What is...

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