Not getting tests back today. Feel pretty good about the last test, though. Chapter 9 today. Oddly low attendance today.Got the guidelines for the group project. Powerpoint presentation and a few problems, dealing with one of the two appendixes. Already got a group to work with, although a disconcerting number of my group is absent today. My group is Group C, doing Appendix A, and answering problems A3, A5, A6, and A8.
Chapter 9: Profit Planning
Looks like today is budget day.
A budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified time period. Used for planning and control.
Responsibility accounting states that managers should be held responsible for all those items they have significant control over, and only those items.
A self-imposed budget is a budget prepared with the full cooperation and participation of managers at all levels. Typically, higher level managers set guidelines and expectations for lower managers’ budgetary decision, even though the actual quantities are set at lower levels.
A zero-based budget requires manager to justify all budgeted expenditures, rather than modifying the budget of previous years. Zero-based budgeting is time consuming and costly to implement, but can prevent avoidable costs from being overlooked.