Accounting Principles 8th Edition
Page 9-1
Budgetary Planning
Managerial Accounting Fifth Edition
Weygandt Kimmel Kieso
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study objectives
1. Indicate the benefits of budgeting. 2. State the essentials of effective budgeting. 3. Identify the budgets that comprise the master budget. 4. Describe the sources for preparing the budgeted income
statement. 5. Explain the principal sections of a cash budget. 6. Indicate the applicability of budgeting in non-
manufacturing companies.
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preview of chapter 9
Page 9-4
Budgeting Basics
Budget
Formal written statement of management's plans for a specified future time period, expressed in financial terms.
Primary way to communicate agreed-upon objectives to all parts of the company.
Promotes efficiency.
Control device - important basis for performance evaluation once adopted.
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