Accounting Chp 22-23 Test Prep

Production Budget

estimates the number of units to be manufactured to meet budgeted sales and desired inventory levels

Cash Budget; Capital Expenditures Budget

financial budgets; inflows --> receipts, Outflows -->Payments

Static Budget

shows the expected results of a responsibility center for only one level of activity

Flexible Budget

shows the expected results of a responsibility center for several activity levels, more accurate than static

Sales Budget

the first budget customarily prepared as part of an entity's master budget

Continuous budgeting

a variation of fiscal-year budgeting whereby a 12-month projection into the future is maintained at all times

Master Budget

an integrated set of operating, investing, and financing budgets for a period of time

Operating Budgets

budgets that communicate an organization's sales and production goals and the resources needed to achieve these goals; income statement

Financial Budgets

budgets that focus on the firm's financial goals and identify the resources needed to achieve these goals; balance sheet