Scribd Logo
Upload

Welcome to Scribd!

  • 4 views

    Chapter 8 - Master Budgeting Flashcards - Quizlet

    Uploaded by

    Bisag Asa
    The document discusses key aspects of master budgeting, including definitions of budgets, advantages of budgeting, the order of budgets in a master budget, and components of specific budgets like the sales budget, production budget, cash budget, and budgeted income statement. It provides explanations of concepts like responsibility accounting, continuous budgeting, self-imposed budgets, and the flipped COGS equation used to calculate production requirements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Chapter 8 - Master Budgeting Flashcards - Quizlet

    Uploaded by

    Bisag Asa
    4 views3 pages
    The document discusses key aspects of master budgeting, including definitions of budgets, advantages of budgeting, the order of budgets in a master budget, and components of specific budgets like the sales budget, production budget, cash budget, and budgeted income statement. It provides explanations of concepts like responsibility accounting, continuous budgeting, self-imposed budgets, and the flipped COGS equation used to calculate production requirements.

    Original Description:

    Original Title

    Chapter 8_ Master Budgeting Flashcards _ Quizlet

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses key aspects of master budgeting, including definitions of budgets, advantages of budgeting, the order of budgets in a master budget, and components of specific budgets like the sales budget, production budget, cash budget, and budgeted income statement. It provides explanations of concepts like responsibility accounting, continuous budgeting, self-imposed budgets, and the flipped COGS equation used to calculate production requirements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    4 views3 pages

    Chapter 8 - Master Budgeting Flashcards - Quizlet

    Uploaded by

    Bisag Asa
    The document discusses key aspects of master budgeting, including definitions of budgets, advantages of budgeting, the order of budgets in a master budget, and components of specific budgets like the sales budget, production budget, cash budget, and budgeted income statement. It provides explanations of concepts like responsibility accounting, continuous budgeting, self-imposed budgets, and the flipped COGS equation used to calculate production requirements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 3

    9/24/22, 7:56 PM Chapter 8: Master Budgeting Flashcards | Quizlet

    Chapter 8: Master Budgeting Upgrade


    Study

    Social Science Economics Finance

    Chapter 8: Master Budgeting


    Leave the first rating

    Textbook solutions for this set

    Fundamentals of Financial Management, Concise


    Edition
    10th Edition
    Eugene F. Brigham, Joel Houston

    777 solutions

    Search for a textbook or question

    Terms in this set (15)

    -a detailed plan for the future that is usually


    Budget expressed in formal quantitative terms

    -involves planning and contol

    involves developing goals and preparing various


    Planning
    budgets to achieve those goals

    involves gathering feedback to ensure that the plan is


    Control being properly executed or modified as
    circumstances change

    https://quizlet.com/78766368/chapter-8-master-budgeting-flash-cards/ 1/3
    9/24/22, 7:56 PM Chapter 8: Master Budgeting Flashcards | Quizlet

    Chapter 8: Master Budgeting


    - communicate management plans
    Study
    -force managers to think ahead

    Advantages of Budgeting -uncover bottlenecks

    -coordinate activities

    -define goals and objectives for benchmarks

    managers are responsible for those items which they


    Responsibility Accounting
    can control

    a budget that rolls forward one month/period as the


    Continous/Perpetual Budget
    current month/period is being completed

    self-prepared; usually more accurate; more


    Self-imposed Budget motivation; no excuses; sometimes leads to
    budgetary slack

    consists of a number of separate but independent


    Master Budget budgets that formally lay out the company's sales,
    production, and financial goals

    - first step in master budget

    - based on expected sale for the period

    Sales Budget
    - expected cash collections is usually prepared with
    the sales budget

    defines how many units need to be produced during


    Production Budget the budget period > leads into various manufacturing
    budgets (DM, DL, MOH)

    https://quizlet.com/78766368/chapter-8-master-budgeting-flash-cards/ 2/3
    9/24/22, 7:56 PM Chapter 8: Master Budgeting Flashcards | Quizlet

    Chapter 8: Master Budgeting


    Sales/Schedule of cash collections
    Study
    Production

    DM, DL, MOH

    Order of budgets
    Cash Budget

    Budgeted Income Statement

    Budgeted Balance Sheet

    - Shows how the cash resources will be acquired and


    Cash Budget used

    - Composed of four sections

    - Cash Receipts -> inflows from sales

    - Cash Disbursements -> all cash payments planned

    - Cash Excess/Deficiency -> need to adjust ending


    Four Sections of Cash Budget
    cash bal

    - Financing Section -> borrowings and interest


    payments to be made

    - All revenues and expenses are shown

    Budgeted Income Statement


    - Shows impact of change in budget

    Sold

    + EI

    Flipped COGS Equation used


    =Avail/Needs

    for Production Budget


    - BI

    = Production Requirements

    https://quizlet.com/78766368/chapter-8-master-budgeting-flash-cards/ 3/3

    You might also like