Accounting 1B Chapter 6

Front 1

budget

Back 1

An accounting device used to plan and control resources of operational departments and divisions.

Front 2

budgetary slack

Back 2

Excess resources set within a budget to provide for uncertain events.

Front 3

capital expenditures budget

Back 3

The budget summarizing future plans for acquiring plant facilities and equipment.

Front 4

cash budget

Back 4

A budget of estimated cash receipts and payments.

Front 5

continuous budgeting

Back 5

A method of budgeting that provides for maintaining a 12-month projection into the future.

Front 6

cost of goods sold budget

Back 6

A budget of the estimated direct materials, direct labor, and factory overhead consumed by sold products.

Front 7

direct labor cost budget

Back 7

Budget that estimates direct labor hours and related costs needed to support budgeted production.

Front 8

direct materials purchases budget

Back 8

A budget that uses the production budget as a starting point to budget materials purchases.

Front 9

factory overhead cost budget

Back 9

Budget that estimates the cost for each item of factory overhead needed to support budgeted production.

Front 10

flexible budget

Back 10

A budget that adjusts for varying rates of activity.

Front 11

goal conflict

Back 11

A condition that occurs when individual objectives conflict with organizational objectives.

Front 12

master budget

Back 12

The comprehensive budget plan linking all the individual budgets related to sales, cost of goods sold, operating expenses, projects, capital expenditures, and cash.

Front 13

production budget

Back 13

A budget of estimated unit production.

Front 14

responsibility center

Back 14

An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.

Front 15

sales budget

Back 15

One of the major elements of the income statement budget that indicates the quantity of estimated sales and the expected unit selling price.

Front 16

static budget

Back 16

A budget that does not adjust to changes in activity levels.

Front 17

zero-based budgeting

Back 17

A concept of budgeting that requires all levels of management to start from zero and estimate budget data as if there had been no previous activities in their units.