ACCT 2101 Chapter : Acct Ch 10 Notes Complete
Document Summary
Managers looking at the performance after giving employees the budgets 6 months later seeing if they performed as expected: budgetary control the use of budgeting in controlling operations. Uses sales, labor, scrap departmental overhead costs, selling expenses, and income statement. Not using static budgets- this is completely separate: vp of prod. And prod department managers receive a labor report: production manager-scrap report, department manager- departmental overhead report, sales manager- selling expenses report, top management- income statement report, top management and sales manager- sales report. Static budget reports: static budget a projection of budget data at one level of activity. Used for fixed manufacturing costs and fixed selling & administrative expenses. Product line budget actual difference (this is less than 1 % of budgeted sales: They should also not be construed as encompassing the complete body of knowledge required for successful completion of this course: variance the difference between actual and planned activity. Favorable actual is greater than planned.
