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ch09

ch09

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Published by sueern

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Published by: sueern on Jun 15, 2009
Copyright:Attribution Non-commercial

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07/16/2013

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Chapter 9-1
CHAPTER CHAPTER 
Budgetary Planning
Managerial Accounting, Fourth Edition
 
Chapter 9-2
Preview of Chapter Preview of Chapter 
Budgeting is critical to financial well-beingBudgeting is critical to financial well-beingUse budgets in planning and controlling operationsUse budgets in planning and controlling operations
Specific focus is on how budgeting is used as aSpecific focus is on how budgeting is used as a
 planning tool  planning tool 
by management.by management.
 
Chapter 9-3
Budgeting Basics Budgeting Basics 
BudgetBudget
A formal written statement of management’s plansA formal written statement of management’s plansfor a specified future time period, expressed infor a specified future time period, expressed infinancial termsfinancial terms
l
Primary way to communicate agreed-uponPrimary way to communicate agreed-uponobjectives to all parts of the companyobjectives to all parts of the company
l
Promotes efficiencyPromotes efficiency
l
Control device Control device 
 
- important basis for performance- important basis for performanceevaluation once adoptedevaluation once adopted

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