ACC 100 Lecture Notes - Lecture 9: Direct Labor Cost, Financial Plan, Controllability

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Lior Yitzhaky

Document Summary

Budgets help owners and managers to plan ahead and later exercise control by comparing what actually happened to what was expected according to the budget. Budgets formalize managers expectations regarding sales, prices, and costs. Planning: looking ahead to see what actions should be taken to realize particular goals. Control: looking backward, determining what actually happened, and comparing it with the previously planned outcomes. Cycle of planning, budgeting, and controlling: strategic plan, long term objectives, short term objectives, shirt term plan, budgets, feedback, monitoring of actual activity, comparison of actual with planned, investigation, corrective action. Budgets: financial plans for the future and are a key component to planning. Identify objectives and actions needed to achieve them. Strategic plan: identifies strategies for future activities and operations, generally covering at least five years, long and short term objectives, these objectives form the basis for the budget. Financial plan for the organization as a whole,