BU467 Lecture Notes - Lecture 5: Operating Expense, Pro Forma, Income Statement
Document Summary
A quantitative expression for a set time period of a proposed plan of action by management and. An aid to coordinating what needs to be done to implement that plan. Includes both financial and non-financial aspects expected future events. Reported according to gaap standards and supported by non-financial schedules. Translating that goal or strategy into quantitative terms. Manager and accountants plan to performance of the organization and sub-units. Provide a frame of reference against which results can be compared. Look at external environment not only internal. 2: plan again, based on feed from changed conditions and actual performance. Investigation variations and implement corrective actions as necessary. Short-run planning working on the operation plans. The arrows are bi-directional so what that means is it goes out and comes back in kind of like a loop. Summarize all the financial and non-financial plans into a single document. Compare your forecast to your master budget.
