ACC 312 Lecture 11: Chapter 12 Responsibility Centers Class Notes
Document Summary
The information you"re learning towards the end of this semester builds on the information you"ve already studied this semester. During this class and next, we will review the first halves of chapter 12 and 13. I think as we go through these two chapters you will see how chapters 9, 10 & 11, relate to chapters 12 &13. Remember: if you fail to plan, then you plan to fail . There are 5 general purposes of budgets (this is a straight copy and paste from our chapter 9 class notes): planning to quantify a plan of action. The budget process facilitates this and forces alignment: allocating limited resources budget forces prioritization (funding) of limited resource needs, controlling profit and operations a budget is a plan, and plans are subject to change. However, the budget provides a useful benchmark for actual results to be compared against: evaluating performance and providing incentives this is closely linked with 4 above.
