Budgeted Income Statement

›
The budgeted income statement is easily generated using information from the previous budgets. To complete the computation of net in...

Advantages and Disadvantages of Budgeting

›
A realistic budget will motivate action. This may be true, but what is important is that the budgetary control system keeps the organisatio...
1 comment:

Marketing and Administrative Costs Budget

›
The marketing and administrative costs budgeting objective is to estimate the amount of marketing and administrative costs required to: ...

Cost of Sales Budget

›
Computation requires estimates of beginning and ending levels of work-in-process and finished goods inventories. If WIP levels are assumed...

Purposes of Budgeting Systems

›
Budgeting system - procedures used to develop a budget . Budgeting systems have five major purposes: Planning. Facilitating communicat...

The Master Budget - Definition

›
Master budget - a financial plan of an organization for the coming year or other planning period.  It generally culminates in a cash budge...

What is Responsibility Accounting

›
Responsibility accounting is based on the notion that managers should be held responsible for those (and only those) cost/revenue items th...

Overhead Budget

›
Amounts of labor and overhead expected to be consumed are based on the production budget. These amounts are also used to forecast staffi...

Materials Purchase Budget

›
We use the following relationship to forecast material purchase requirements: Required purchases in units= Materials to be used in produ...

Ending Inventory and Production Budgets

›
We use the following relationship to forecast production requirements: Required production in units= Budgeted sales in unites + Budgeted...