Financial Decision making (BUS 317) GCU Final Exam
(PowerPoints)
Master budget classes
oOperating budgets.
• Result in the preparation of budgeted income statement.
• Establish goals for the company’s sales and production
personnel. oFinancial budgets.
• Include capital expenditures budget, cash budget, and budgeted balance
sheets.
• Focus primarily on the cash resources needed to fund expected
operations and planned capital expenditures.
What is a sales forecast?
shows potential sales for the industry and a company's expected share of
such sales.
What is an operating budget
are used as the basis for the preparation of the budgeted income statement.
What is a master budget
is a set of interrelated budgets that constitutes a plan of action for a
specified time period.
, What is long range planning
identifies long-term goals, selects strategies to achieve these goals, and
develops policies and plans to implement the strategies.
Lower-level managers are more likely to perceive results as fair and
achievable under
Participative budgeting approach
What do financial budgets focus on
primarily on the cash resources needed to fund expected operations and
planned capital expenditures.
Production budget equation
Expected unit sales + desired ending finished goods units - beginning
finished goods units= required production units
Direct materials required for production formula
units to be produced x direct materials units per unit of unit
produced= direct materials units required for production
Direct material units to be purchased forumla
Direct materials units required for production+ desired ending direct
material units-beginning direct material units= direct materials units to
be purchased
(PowerPoints)
Master budget classes
oOperating budgets.
• Result in the preparation of budgeted income statement.
• Establish goals for the company’s sales and production
personnel. oFinancial budgets.
• Include capital expenditures budget, cash budget, and budgeted balance
sheets.
• Focus primarily on the cash resources needed to fund expected
operations and planned capital expenditures.
What is a sales forecast?
shows potential sales for the industry and a company's expected share of
such sales.
What is an operating budget
are used as the basis for the preparation of the budgeted income statement.
What is a master budget
is a set of interrelated budgets that constitutes a plan of action for a
specified time period.
, What is long range planning
identifies long-term goals, selects strategies to achieve these goals, and
develops policies and plans to implement the strategies.
Lower-level managers are more likely to perceive results as fair and
achievable under
Participative budgeting approach
What do financial budgets focus on
primarily on the cash resources needed to fund expected operations and
planned capital expenditures.
Production budget equation
Expected unit sales + desired ending finished goods units - beginning
finished goods units= required production units
Direct materials required for production formula
units to be produced x direct materials units per unit of unit
produced= direct materials units required for production
Direct material units to be purchased forumla
Direct materials units required for production+ desired ending direct
material units-beginning direct material units= direct materials units to
be purchased
