Ch 8.1 SB: Master Budgeting

a budget

A detailed plan for the future that is usually expressed in formal quantitative terms is:

Responsibility Accounting

managers should only be held accountable for items they can actually control

control

Gathering feedback to ensure that the plan is being followed

are based on estimates and assumptions answer several key questions about a company

Master budget schedules:

establish goals measure operating results isolate areas needing attention

The purpose of a budget should be to:

False

True or false: Control involves developing goals and preparing various budgets to achieve those goals.

False

True or false: The definition of responsibility accounting states that senior management is directly responsible for every decision made by lower level managers.

continuous/perpetual budget

A 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed

self imposed

A manager cannot complain that the budget was unrealistic and impossible to meet when a ______ ______ ____ is in place

master budget

A number of separate, but interdependent, budgets that formally lay out the company's sales, production, and financial goals are contained in the

master budget

An essential management tool that communicates management's plans throughout the organization, allocates resources, and coordinates activities is called the

mistrust

Using a budget to blame or pressure employees to do a better job leads to:

self-imposed budget

Recognizing individuals at all levels of the organization as team members whose views and judgments are valued by top management is an advantage of:

continuous/perpetual budget

A budget that keeps managers focused at least one year ahead