ACCTING 1002 Lecture Notes - Cost Accounting, Sales Operations, Budget

• School: University of Adelaide
• Department: ACCTING - Accounting
• Course: ACCTING 1002
• Professor: Nurmalisa Chi Alie

Document Summary

Topic 8: cost planning (budgets) and cost control (variance analysis) Fixed and rolling budgets for planning & decision making. Budgets- are plans to deal with the acquisition and use of resources over a specified time period. Budgets can range from relatively simple personal budgets and time budgets to sophisticated budgets for multinational companies that use thousands of different materials and manufacture hundreds of products. Why budget: budgeting improves the planning and controlling processes of a business, it quantifies plans, it creates benchmarks for evaluating a business"s performance. Budgets are the financial quantification of plans, dealing with the acquisition and use of resources over a specified time period. Managers use budgeting for planning operating and controlling activities. Planning- is a cornerstone of good management. Operating activities- entail day to day managerial decision making. Control activities- include, ensuring that the objectives and goals of an organisation are attained.