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19 Cards in this Set

  • Front
  • Back
a detailed plan for the acquisition and use of financial and other resources over a specified time period.
budget committee
a group of key managers who are responsible for overall policy matters relating to the budget program and for coordinating the preparation of the budget.
cash budget
a detailed plan showing how cash resources will be acquired and used over some specific time period.
continuous budget (perpetual budget)
a 12-month budget that rolls forward one month as the current month is completed.
those steps taken by management to increase the likelihood that the objectives set down at the planning stage are attained and that all parts of the organization are working together toward that goal.
direct labor budget
a detailed plan showing labor requirements over some specific time period.
direct materials budget
a detailed plan showing the amount of raw materials that must be purchased during a period to meet both production and inventory needs.
ending finished goods inventory budget
a budget showing the dollar amount of unsold finished goods inventory that will appear on the ending balance sheet.
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.
master budget
a summary of a company's plans in which specific targets are set for sales, production, distribution, and financing activities and that generally culminates in a cash budget, budgeted income statement, and budgeted balance sheet.
material requirements planning (MRP)
an operations management tool that uses a computer to help manage materials and inventories.
merchandise purchases budget
a budget used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.
developing objectives and preparing budgets to achieve those objectives.
production budget
a detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs.
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 the manager can exert significant control. the managers are held responsible for differences between budgeted and actual results.
sales budget
a detailed schedule showing the expected sales for coming periods; these sales are typically expressed in both dollars and units.
self-imposed budget (participative budget)
a method of preparing budgets in which managers prepare their own budgets. these budgets are then reviewed by the manager's supervisor, and any issues are resolved by mutual agreement.
selling and administrative expense budget
a detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.
zero-based budget
a method of budgeting in which managers are required to justify all costs as if the programs involved were being proposed for the first time.