___________________________________________________________ CHAPTER 8 QUESTIONS FOR WRITING AND DISCUSSION 1. Budgets are the quantitative expressions of plans. Budgets are used to translate the goals and strategies of an organization into operational terms. 2. Control is the process of setting standards‚ receiving feedback on actual performance‚ and taking corrective action whenever actual performance deviates from planned performance. Budgets are standards‚ and they are compared with actual costs and revenues to provide feedback
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(or profit planning) is a process or technique with broad applications in the management of a business‚ school or government agency. The rules apply to not-for-profits‚ as well. The process involves the formation of definite and specific plans or budgets for a limited future period‚ usually the ensuing fiscal or calendar year. These plans‚ which take into account all phases of the budgeted operations‚ are given expression in financial terms. They also become standards against which to measure and
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a sales budget by product line in both units and dollars. From this budget‚ sales quotas by product line in units and dollars are established for each of the corporation’s sales districts. The marketing manager also estimates the cost of the marketing activities to support the target sales volume and prepares a tentative marketing expense budget. The executive vice president uses the sales and profit targets‚ the sales budget by product line‚ and the tentative marketing expense budget to determine
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Making a Family Budget Does your family have a budget? Statistics shows that families with a budget are better off financially then families that don’t have a budget. Family budgets are not very hard to establish and once put into existence‚ they are not that hard to maintain. Family budgets are the backbone of most successful families and the lack of one is the demise of not so successful families. Family budgets are equal opportunity beneficiaries. Having a family budget is and essential part
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CHAPTER 6: MASTER BUDGET AND RESPONSIBILITY ACCOUNTING TRUE/FALSE 1. Few businesses plan to fail‚ but many of those that flop have failed to plan. Answer: True Difficulty: 1 Objective: 1 2. The master budget reflects the impact of operating decisions‚ but not financing decisions. Answer: False Difficulty: 1 Objective: 1 The master budget reflects the impact of operating decisions and financing decisions. 3. Budgeted financial statements are also referred to as pro
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Exam II I. TRUE / FALSE 1. A budget generally includes both financial and nonfinancial aspects of the plan. 2. The revenues budget should be based on the production budget. 3. A favorable variance should be ignored by management. 4. The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job. 5. For fixed overhead costs‚ the flexible-budget amount is always the same as the static-budget amount. II. MULTIPLE CHOICE
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Field Research Paper For this research paper‚ I chose to use the City of Miami Beach budget as an example. The annual Citywide Work Plan and budget serve as guides for how the City plans to address community priorities in each fiscal year. The Citywide work plan contains initiatives to support the Key Intended Outcomes (KIOs) in the City’s Strategic Plan. The Work Plan initiatives are updated annually based on the latest survey results‚ socioeconomic trends‚ and department workload and performance
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mechanism for the organisation. Discuss. “It’s clearly a budget. It’s got a lot of numbers in it” (George W. Busch 2005). This definition of a budget can be supplemented using the Oxford dictionary‚ which states that a budget is an estimate of income and expenditures for a set period of time. Nowadays almost every business uses budgets and managers use them as a tool in order to set targets. In other words managers can‚ with the use of budgets‚ explain in a financial way what are the objectives of
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of budgets‚ which‚ when brought through‚ from an integrated business plan known as master budget. The master budget is an essential management tool that communicates management’s plan throughout the organization‚ allocates resources‚ and coordinates activities. Budgeting: A budget is a detailed plan for acquiring and using financial and other resources over a specified period of time. It represents a plan for the future expressed in formal quantitative terms. The act of preparing a budget is called
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TOWN OF BELLINGTON Exhibit 1. Performance Budget – Snow Removal Department October-December Static Budget Flexible Budget Actual Performance Difference between static budget and actual performance Difference between flexible budget and actual performance Snow days 10 12 12 (2) -- Cubic miles of snow 1‚250 1‚500 1‚500 (250) -- Costs Drivers $18‚000 $21‚600 $24‚675 $(6‚675) $(3‚075) Supplies 1‚125 1‚350 1‚875 (750) (525) Fuel 1‚750 2‚100 2‚500 (750) (400) Maintenance 1‚375 1‚650 2‚200
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