Budget - ANSWERSa detailed plan, expressed in quantitative terms, that specifies how resources will be acquired and used during a given period of time
Capital expenditure budget - ANSWERSshows dollar amounts estimated to be spent to purchase additional plant assets the company will use to carry ...
ACCT final Exam 2024 With Complete Solutions
Budget - ANSWERSa detailed plan, expressed in quantitative terms, that specifies how resources will be acquired and used during a given period of time
Capital expenditure budget - ANSWERSshows dollar amounts estimated to be spent to purchase additional plant assets the company will use to carry out its budgeted business activities
Rolling Budget - ANSWERScontinuously updated by adding a new time period (e.g., a month) and dropping the period just completed
Padding the budget, budgetary slack - ANSWERSUnderestimating sales and overestimating expenses are examples of padding, and the difference between the padded amount and the realistic amount
Master budget - ANSWERSa comprehensive profit plan that covers all phases of an organization's operations
Sales budget - ANSWERSthe first step in preparing the master budget, which shows the planned sales units and the expected dollars from these sales
Production budget - ANSWERSshows the number of units to be produced in a period (ALWAYS expressed in units)
Purchases budget - ANSWERScontains the amount of inventory that a company must purchase during each budget period
Material budget - ANSWERSthe budgeted cost for materials that will need to be purchased to satisfy the estimated production of the period
Safety stock - ANSWERSan extra quantity of a product which meant to prevent an out-
of-stock situation
Variances - ANSWERSDirect Material Price Variance
Direct Material Quantity Variance
Direct Labor Rate Variance
Direct Labor Efficiency Variance
Flexible budget - ANSWERSrange of activity (can be prepared before AND after accounting period)
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