ACC 252 Lecture Notes - Lecture 6: Financial Statement, Headcount, Operations Management
29 Aug 2016
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Planning: involves developing objectives and preparing various analysis to achieve these objectives. Budgeting: process of identifying, gathering, summarizing, and communicating financial and non financial information about an organization"s future activities. Helps get everyone on the same page. Communicating in a way someone can understand. Must be tied to a company"s strategy. Budget -> short term goals -> long term goals. Budget preparation must include the entire management team. Prepared with full cooperation of all managers at all levels. Top managers usually initiate the budget process by issuing broad guidelines in terms of overall profit/sales. The annual operating budget may be divided into quarterly/monthly budget. A set of budgets that consolidate an organization"s financial information into pro-forma financial statements for a future period of time. Basically -> leads to projected financial statements. How much finished inventory should be maintained during the year. How many units must be produced next year to meet sales demand and desired inventory levels.
