Cost chapter 10 slides

______ is a detailed plan for the acquisition and use of financial and other resources over a specified period of time

budget

_____ is the process of preparing one or more budgets

budgeting

What is the budgeting process?

-budget committee

-budget period

-budget guidelines

-negotiation, review, and approval

-revision

The starting point in the budget-preparation process is specification of the organization's _____

strategy

The organization's long range plan identifies required actions over a ___ to ___ year period to attain the organization's strategic goals.

5-7

The ______ plans for all phases of operations, including production, purchasing, personnel, and marketing budgets

operating budgets

The _______ identify sources and uses of funds for budgeted operations and capital expenditures

financial budgets

The _____ represents the "grand plan of action" for an upcoming period. It translates the organization's short term objectives into action steps.

master budgets

The set of operating budgets culminates in a budgeted ______. The set of financial budgets culminates in a budgeted ____.

income stmt; balance sheet

The _____ budget is prepared first.

sales

The ____ shows forecasted sales, in units and dollars, for an upcoming period. What are its 2 components?

sales budget

-forecasted sales volume and budgeted selling prices

After the sales budget, we prepare the ____.

production budget

What is the formula for budgeted production?

budgeted sales

+desired ending inventory

-beginning inventory

The _____ is the last line of the production budget. it shows the amount of direct materials required for budgeted production.

DM usage budget

The ____ contains budgeted purchases of DM for the upcoming period.

DM purchases bugdet

The ____ enables the personnel department to plan for hiring and repositioning of employees based on production needs.

DL budget

A ______ budget includes all production costs other than DM and DL

factory OH budget

The ______ and ____ budget is prepared after the FOH budget is prepared,

COGM and COGS budget

The _____ depicts the effects on cash of all budgeted activities.

cash budget

What 3 sections are in the cash budget?

-CF from OA

-CF from IA

-CF from FA

The budgeted ____ is the last budget in the budget-preparation process.

balance sheet

A _____ analysis includes, best case, worst case, and most likely scenarios.

scenario

For a service company, the focus of the budgeting process is...

personnel planning

_____ is a budgeting process that requires managers to prepare budgets from a 0 base. Allows no activities or functions to be included in the budget unless managers can justify their needs.

zero base budgeting (ZBB)

_______ is an extension of the traditional form of ABC. It starts with a budgeted output and segregates cost required for the budgeted output into homogeneous cost pools.

activity based budgeting (ABB)

______ is a method of budget preparation used in conjunction with a TDABC system.

time-driven activity-based budgeting (TDABB)

T/F: Budgeting in both ABC and TDABC systems facilitates resource capacity planning.

true

_________ is a budgeting approach that incorporates continuous improvement expectations in the budget. It can be used as a complement to both traditional and activity based systems

kaizen (continuous improvement) budgeting

______ is the cushion managers intentionally build into budgets to help ensure success in meeting the budget

budgetary slack

______ is a term that refers to the degree of consistency between goals of the firm, its subunits, and its employees.

goal congruence

A "_______" is suggested with incentives for exceeding the budgeting figures.

highly achievable target