ACCT 2200 Lecture Notes - Lecture 8: Budget, Financial Statement, Income Statement

• School: University of Iowa
• Department: Accounting
• Course: ACCT 2200
• Professor: Dan Collins

Document Summary

Planning/organizing: forward-looking phase of the managerial process; involves setting long- and short-term objectives and identifying the tactics that will be used to achieve them; arranging for necessary resources to achieve the plan, including preparation of a budget. Directing/leading: action phase of managerial process; involves implementing the objectives developed in the planning phase, including motivating employees to achieve the objectives. Control: backward-looking phase of the managerial process; involves comparing actual results to budgeted amounts and taking corrective action, if necessary. Motivates employees to work toward the organization"s goals useful benchmark for evaluating and rewarding employee performance. Master budget: comprehensive set of budgets that covers all phases of an organization"s planned activities for a specific period. Fg inv. raw materials purchases budget = production budget + budg. ending raw materials inventory. Budgeted beginning raw materials inventory direct labor budget: based on production budget & shows labor required to produce each unit.