ACCT 2230 Chapter Notes - Chapter 9: Income Statement

• School: University of Guelph
• Department: Accounting
• Course: ACCT 2230
• Professor: Lynn Carty

Document Summary

Budget: a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period. Master budget: a summary of a company"s plans in which specific targets are set for sales, production, distribution, and financing activities; it generally cumulates in a cash budget, a budgeted income statement, and a budgeted balance sheet. Bottleneck: a machine, activity, or process that limits total output because it is operating at capacity. Responsibility accounting: a system of accountability in which managers are held responsible for those items of revenue and cost over which they can exert significant influence and only those items. Managers are held responsible for differences between budgeted and actual results. Continuous or perceptual budget: a 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. Participative budget: a method of preparing budgets in which managers prepare their own budget estimates.