Exam (elaborations)
ACG 2071 Exam 3 (FSU Sudano) (1).
- Course
- Institution
ACG 2071 Exam 3 (FSU Sudano) (1).
[Show more]
Seller
Follow
modockochieng06
Content preview
ACG 2071 Exam 3 (FSU Sudano)Budget definition - ANS-A written plan outlining how much money a firm intends to
make, borrow, spend, etc. within some specific time period (usually a year)
Firms should budget because... - ANS-1) it forced managers to think ahead
2) it spells out management's plans and coordinates everyone's activities
3) it creates a benchmark for future performanc
3 types of budgeting - ANS-1) continuous - perpetually updated so that the budget
always contains 12 months
2) zero-based - every year the budget restarts from 0
3) participative - all levels of management give input on the budget (incentive to build
slack - under-estimate revenues and over-estimate expenses)
2 sub-budgets within the master budget: - ANS-1) operating budget
2) financial (cash) budget
Budgeting formula - ANS-what goes out + ending - beginning = what you need
Standard cost formula - ANS-DM + DL + OH
Estimated cash collections come from... - ANS-Sales
Estimated cash disbursements come from... - ANS-Purchases
Estimated accounts receivable balance come from... - ANS-Sales
Estimated accounts payable balance come from... - ANS-Purchases
Master budget variance is also called: - ANS-Static budget variance
Revenue variance is also called: - ANS-Spending variance OR flexible budget variance
Activity variance is also called: - ANS-Volume variance OR sales variance
Price (rate) variance = - ANS-I ap-sp I x aq
Quantity (usage or efficiency) variance = - ANS-I aq-sq I x sp
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now