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27 Cards in this Set
- Front
- Back
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planning
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establishing enterprise wide objectives
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budget
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financial plans for a specified time period
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long range planning
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at least five years
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the master budget
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operating budgets
financial budgets capital expenditures budget |
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static budget
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prepared at one level of activity
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flexible budget
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prepared at multiple levels of activity
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controllable costs
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costs that can be influenced by the manager
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noncontrollable costs
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costs that cannot be directly influenced by the manager
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cost centers
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manager can only influence costs incurred
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profit centers
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manager can influence costs and revenues within center
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investment centers
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manager can influence costs, revenues, and invested capital
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segment income
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controllable margin=
division net income |
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return on investment
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contollable margin/avg. assests
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residual income
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controllable margin
-imputed investment charge |
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imputed investment charge
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minimum ROI
*avg assets |
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standard costs
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should be incurred under efficient operations
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ideal standards
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based on perfect operating conditions
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normal standards
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based on efficient operations with tolerable innefficiencies
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balanced scorecard
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companies use financial and nonfinancial measures to evaluate performance
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tropism
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The turning or bending (typically by growth instead of movement) of an organism in response to an external stimulus.
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participative budgeting
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each level of management is invited to participate in developing the budget
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budgetary slack
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managers underestimate sales and overestimate costs to make goals easier to attain
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ecesis
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The entry or establishment of a plant in a new habitat
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management by exception
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review of budget report focuses on differences between actual and planned results
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materiality
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ussually a percentage difference from the budget
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direct fixed costs
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relate to one center and are incurred by that center
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indirect fixed costs
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incurred for the benefit of more than one center
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