HELP! VOCAB Expenses are overbudgeted and revenue is underbudgeted in order to make performance look

HELP! VOCAB

Expenses are overbudgeted and revenue is underbudgeted in order to make performance look better or to make sure resources are available if there are budget cuts later

Budgets used to develop the budgeted income statement

Consists of all supporting budgets needed to create budgeted financial statements

Non-cash expenditures that need to be subtracted from operating expenses when calculating cash payments

Every dollar in the budget must be justified

Include the capital expenditures budget and the cash budgets

Merges the budgeted cash collections and cash payments to project the ending cash position

The very first budget prepared

Used to prepare the direct materials budget, the direct labor budget and the manufacturing overhead budget

Involves input from lower level managers who have more detailed knowledge and will be more likely to be motivated by a budget they helped create

Includes the CEO, CFO and managers across the value chain

Budget that is continuously updated so there are 12 months of operations budgeted

Lending arrangement from a bank that allows money to be borrowed as needed

Shows the company’s intentions to invest in new property, plant and equipment

Budgets prepared for different levels of activity 1.

Rolling budget 2.

Participative budget 3.

Budgetary slack 4.

Budget committee 5.

Zero-based budgeting 6.

Master budget 7.

Operating budgets 8.

Financial budgets 9.

Sales budget 10.

Units to be produced 11.

Capital expenditures budget 12.

Bad debts and depreciation 13.

Combined cash budget 14.

Line of credit 15.

Flexible budgets