Accounting Hub

Budgets are usually used to evaluate performance after the fact, using a process known as variance analysis. Since some costs are var...

Budgeted balance sheet - a statement of budgeted financial position. The ending balance in a given account equals the beginning bal...

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

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

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

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

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

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

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

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