RSM222H1 Lecture Notes - Main Source, Budget, Household-Responsibility System
7 Apr 2013
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Document Summary
A budget is a quantitative plan for the accusation and use of financial and other resources over a specified future time period. The act of preparing a budget is called budgeting. The use of budgets to control in firms activities is known as the budgetary control. The master budget is a summary of a company"s plan that sets specific targets for sales, production, distribution, and financing activities culminates in a cash budget, a budgeted income statement, and a budgeted balance sheet . Represents a comprehensive financial of inspection of management"s plan for the future and these plans are to be accomplished. Planning involves developing our objectives and preparing various budgets to achieve these objectives. Managers usually will have informal plans even before they become involved in developing their budgets the budgets process provides a mechanism for quantifying the financial consequences of these parts.
