Chapter 7 Managerial Accounting

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Chapter 7 Managerial Accounting
2014-06-01 14:45:24
accounting managerial

Chapter 7 Term words
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  1. Budget
    A quantitative plan for acquiring and using resources over a specified time period.
  2. Cash Budget
    A detailed plan showing how cash resources will be acquired and used over a specific time period.
  3. Continuous budget (Perpetual budget)
    A 12 month budget that rolls forward one month as the current month is completed.
  4. Control
    Those steps taken by management to increase the likelihood that all parts of the organization are working together to achieve the goals set down at the planning stage.
  5. Direct Labor budget
    A detailed plan that shows the direct-labors required to fulfill the production budget.
  6. Direct materials budget
    A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories.
  7. Ending finished goods inventory budget
    A budget showing the dollar amount of unsold finished goods inventory that will appear on the ending balance sheet.
  8. Manufacturing overhead budget
    A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period.
  9. Master budget
    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.
  10. Merchandise purchases budget
    A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.
  11. Participative budget (self-imposed budget)
    A method of preparing budgets in which managers prepare their own budgets.  These budgets are then reviewed by higher-level managers, and any issues are resolved by mutual agreement.
  12. Planning
    Developing goals and preparing budgets to achieve those goals.
  13. Production Budget
    A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs.
  14. Responsibility accounting
    A system of accountability in which managers are held responsible for those items of revenue and cost - and only those items - over which they can exert significant control.  The managers are held responsible for differences between budgeted and actual results.
  15. Sales Budget
    A detailed schedule showing expected sales expressed in both dollars and units.
  16. Selling and Administrative expense budget
    A detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.