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 fle 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’Fnancial’and’other’resources’ over’a’speciFed’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 fle 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 fle 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 fle 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 fle 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’ fscal’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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CH06_part1 - Master Budgeting and Responsibility Accounting...

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