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CH06_part1 - Master Budgeting and Responsibility Accounting...

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Master Budgeting and Responsibility Accounting
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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The Basic Framework of Budge4ng A budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period. 1. The act of preparing a budget is called budgeting . 2. The use of budgets to control an organization’s activities is known as budgetary control .
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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Planning and Control Planning involves developing objectives and preparing various budgets to achieve those objectives. Control involves the steps taken by management to increase the likelihood that the objectives set down while planning are attained and that all parts of the organization are working together toward that goal.
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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Advantages of Budgets Promotes coordination and communication among subunits within the company Provides a framework for judging performance Motivates managers and other employees
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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Strategy, Planning, and Budgets, Illustrated
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The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Budget Period Operating Budget 2008 2009 2010 2011 Operating budgets ordinarily cover a one-­‐year period corresponding to a company’s fiscal year. Many companies divide their annual budget into four quarters. A continuous (rolling) budget is a 12-­‐month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed.
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