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Flashcards in Exam 4 Deck (13)
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1

is looking ahead to see what actions
should be taken to realize particular goals

planning

2

is looking backward, determining what actually happened and comparing it with the previously planned outcomes

control

3

are financial plans for the future and are a key component of planning. They identify objectives and the actions needed to achieve them.

budgets

4

is the comprehensive financial plan for the organization as a whole.
Typically for a 1-year period, corresponding to the fiscal year of the company.

master budget

5

describe the income-generating activities of a firm: sales, production, and finished goods inventories. Outcome is a pro forma or budgeted income statement.

operating budget

6

detail the inflows and outflows of cash and the overall financial position

financial budget

7

the expected financial position at the end of the budget period is shown in a budgeted, or pro forma, balance sheet.

cash budget

8

tells how many units must be produced to meet sales needs and to satisfy ending inventory requirements

production budget

9

-Supplies information needed for the balance sheet
-Serves as an important input for the preparation of the cost of goods sold budget.

ending finished good inventory budget

10

outlines planned expenditures for nonmanufacturing activities

selling and administrative expenses budget

11

The alignment of managerial and organizational goals is often referred to as

goal congruence

12

individual behavior that is in basic conflict with the goals of the organization.

dysfunctional behavior

13

occurs when a manager takes actions that improve budgetary performance in the short run but bring long-run harm to the firm.

myopic behavior