BUS 215 Chapter Notes - Chapter 8: Budget
Document Summary
A budget is a detailed plan for the future that is usually expressed in formal quantitative terms. Lo 1: understand why organization budget and the processes they use to create budget. Budgets are used for 2 distinct purposes those goals executed or modified as circumstances change. Planning involves developing goals and preparing various budgets to achieve. Control involves gathering feedback to ensure that the plan is being properly. Need both good planning and control for a goods budgeting system. Personalized accounting info by holding individuals responsible for revenues and. Purpose is not to penalize individuals but rather not dig the company in a hole. A continuous or perpetual budget is a 12-month budget that rolls forward one month. Responsibility accounting = manager is held responsible for only these items costs (or quarter) as the current month (or quarter) is completed. One month is added to the end budget as each month comes to a close.
