on annual development program (ADP) A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues‚ resource quantities‚ costs and expenses‚ assets‚ liabilities and cash flows. It expresses strategic plans of business units‚ organizations‚ activities or events in measurable terms. Definition of Budget An estimation of the revenue and expenses over a specified future period of time. A budget can be made for a person‚ family‚ group
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Chapter 10 Strategy and the Master Budget Cases 10-1 Emerson Electric Company © Joseph San Miguel‚ reprinted with permission. 10-2 LetsGo Travel Trailers (Source: “LetsGo Travel Trailers: A Case for Incorporating the New Model of the Organization into the Teaching of Budgeting‚” by Sally Wright‚ Cases from Management Accounting Practice‚ Vol. 14‚ Montvale‚ NJ: Institute of Management Accountants‚ 1998). Note that part 2 of this case requires the use of Excel. 10-3 Building
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concept. Zero Based Budgeting (ZBB) is an approach to budgeting that starts from the premise that no costs or activities should be factored into the plans for the coming budget period‚ just because they figured in the costs or activities for the current or previous periods. Rather‚ everything that is to be included in the budget must be considered and justified. This initially appears to be a very resource hungry approach‚ and if applied in this simplistic form‚ would quickly fall foul of the law
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succeed have failed to plan. 2) The master budget reflects the impact of operating decisions‚ but not financing decisions. 3) Budgeted financial statements are also referred to as pro forma statements. 4) Budgeting includes only the financial aspects of the plan and not any nonfinancial aspects such as the number of physical units manufactured. 5) Budgeting helps management anticipate and adjust for trouble spots in advance. 6) Budgets can play both planning and control roles for
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cards Term A budget can be a means of communicating a company ’s objectives to external parties. (T/F) | | Definition False | | | Term A benefit of budgeting is that it provides objectives for evaluating performance (T/F) | | Definition True | | | Term A budget can be used as a basis for evaluating performance (T/F) | | Definition True | | | Term A well-developed budget can operate and enforce itself. (T/F) | | Definition False | | | Term The budget itself and the
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were the following stocks: Product: Opening Closing P Q 3‚000 2‚000 1‚500 2‚500 5‚000 2‚000 6‚000 3‚000 Materials: X Y Required: Prepare the following budgets: (i) Sales budget (2 Marks) (ii) Production budget (2 Marks) (iii) Material usage in quantity budget (2 Marks) (iv) Material purchases in quantity & value (4 Marks) Question Two Manyumba company commenced its operations in January 2011. During the year‚ it won a tender
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BUDGETARY CONTROL Budget is a plan which is expressed in terms of definite members: Eg. of a plan – Production has to be increased in the next quarter Eg. of a budget – Production has to improve by 10000 units from the last quarter to the next quarter. Definitions: According to ICMA “budget is a financial & / quantitative statements‚ prepared & approved prior to a defined period of time of the policy to be pursued during that period for the purpose of attaining a given objective. They may
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1. Introduction Piele SA started a budget committee consisting of the chief accountant‚ a cost accountant‚ a technical director‚ and heads of the production departments. The committee was formed to help develop a budget using the zero-based budgeting system. Piele SA’s budget was based on the expected level of activity in sales that the firm expected to generate during the year. Piele SA started its budget from zero‚ and continued to re-evaluate and adjust targets throughout the operating year;
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|Hundred-plus firms are in the industry and differentiation is |High | | |little. | | SWOT analysis: |Strengths |- Aluminum can division’s growth in sales outpaced others. | | |- Aluminum plants scattered through out the United States & each plant
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5(1)‚ Art. 2). INTRODUCTION You are a senior accounting faculty member in the business school and your dean‚ Rose Garrett‚ is asking for help. She is very discouraged after a midyear budget meeting with the Vice President of Finance (VPoF). The college’s Department of Information Technology has a large budget deficit‚ and because of this the VPoF is inclined towards closing the department entirely or closing its bachelor’s program. The department’s deficit is the worst in the university and
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