ACC 312 Lecture Notes - Lecture 9: Direct Labor Cost, Finished Good, Interest Expense
Document Summary
Monday october 23rd, wednesday october 25th, monday october 30th, 2017. If you fail to plan, then you plan to fail . Budget a detailed plan, expressed in quantitative terms, that specifies how limited resources will be acquired and used during a given period of time. What are the 5 general purposes of budgets: planning to quantify a plan of action. Comparing actual results helps managers evaluate performance of individuals, departments, divisions, or entire companies. However, the budget provides a useful benchmark for actual results to be compared against. Master budget a comprehensive profit plan that ties together all phases of an organization"s operations. The master budget comprises many smaller budgets that are interdependent. A master budget consists of preparing three smaller budgets (budgeted income statement, cash budget, and budgeted balance sheet). Cash budget (these are called financing budgets: cash receipts budget from sale of goods or services, cash disbursements budget from purchases, payroll.
