Accounting 2 Chapter 22 – Flashcards

A financial plan that managers use to coordinate a business's activities.

the amount by which a manager intentionally underestimates budgeted revenues or overestimates budgeted expenses in order to make it easier to achieve budgetary goals

The budget summarizing future plans for acquiring fixed assets such as plant facilities and equipment.

Projects revenues in expenses, showing inflow and output of cash. The purpose is to determine if funds will be available when needed

The cash budget and the budgeted financial statements are collectively known as the ___________.

a form of contingency planning in which there are a series of budgets and standards to recognize that certain parts of production may not be controllable; a form of contingency planning to make sure the business succeeds in all situations

A number of separate but interdependent budgets that formally lay out the company's sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet. (Financial, Capital Expenditure, and Operating)

Set of budgets that projects sales revenues, cost of goods sold, and selling and administrative expenses.

Financial plan used for short-term items including payroll and the day-to-day costs associated with running a business

Budget for one level of anticipated activity usually the master budget

A long term financial plan used to coordinate the activities needed to achieve the long term goals of the company.