ACCT 2101 Chapter : ACCT Chapter 9 Notes
Document Summary
Disclaimer: these teaching notes are not intended to be used as a substitute for the content of the text. They should also not be construed as encompassing the complete body of knowledge required for successful completion of this course. Budget for a specified future time period, expressed in financial terms. Used as a planning and communication tool for management. Planning the process of establishing enterprise-wide objectives. Creates an early warning system for potential problems. Results in greater management awareness of the overall operations. Sound organizational structure authority and responsibility are clearly defined. Should portray realistic goals through research and analysis. Length of budget period prepared for specific period of time. Should be long enough to provide an attainable goal under normal operating business conditions. Continuous twelve-month budgets (rolling budget) drops the month just ended and pick up a future month. The budgeting process begins with the sales forecast.
