Flashcards in Exam 4 Deck (13)
is looking ahead to see what actions
should be taken to realize particular goals
is looking backward, determining what actually happened and comparing it with the previously planned outcomes
are financial plans for the future and are a key component of planning. They identify objectives and the actions needed to achieve them.
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.
describe the income-generating activities of a firm: sales, production, and finished goods inventories. Outcome is a pro forma or budgeted income statement.
detail the inflows and outflows of cash and the overall financial position
the expected financial position at the end of the budget period is shown in a budgeted, or pro forma, balance sheet.
tells how many units must be produced to meet sales needs and to satisfy ending inventory requirements
-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
outlines planned expenditures for nonmanufacturing activities
selling and administrative expenses budget
The alignment of managerial and organizational goals is often referred to as
individual behavior that is in basic conflict with the goals of the organization.