Introduction to Management Accounting Global Edition
Summary Financial & Management Decisions including all topics covered in class. For Year 2, Quarter 2, Financial & Management Decisions, Avans University of Applied Sciences
Financial & Management Decisions (FMD) year 2 quarter 2 Avans
Financial and Management Accounting II Chapter 7, 11, 5, 6
notes lectures finance first year quarter 1 and 2
All for this textbook (14)
Written for
Avans Hogeschool (Avans)
International Business & Management
Financial and Management Decisions
All documents for this subject (2)
2
reviews
By: hristochernogorov • 5 year ago
By: esmeecoolen • 5 year ago
Seller
Follow
simonesnepvangers
Reviews received
Content preview
Business Vision
Summary
Financial and
Management
Decisons
Year 2, Quarter 2
Simone Snepvangers
, Chapter 7 ‘Introduction to Budgets and Preparing the
Master Budget’
Budgets and the Organization
Budget = a quanttatve expression of a plan of acton ttat imposes tte formal structure of an
organizaton
Budgetng = tte process of formulatng an organizaton’s plan
4 major advantages of efectve udgetngg
- Compels managers to ttink atead y formalizing tteir responsi ilites for planning
- Provides an opportunity for managers to re-evaluate existng actvites and evaluate possi le
new actvites
- Aids managers in communicatng o jectves and coordinatng actons across tte organizaton
- Provides enctmarking to evaluate su sequent performance
Budgetng process formalizes tte need to antcipate and prepare for ctanging conditons
To prepare a udgetg set o jectves, esta list policies to aid tteir actievement
In tte a sence of goals and o jectves = tard to interpret results, for see pro lems and company
operatons lack directon
Current actvites of tte organizaton are used as a startng point for planning
2 extremes
- Current actvites are assumed to e tte same as for tte new udgetng period
- Zero- ase udget = a udget ttat requires justicaton of expenditures for every actvity,
including contnuing actvites
Efectve udget process encourages managers to ttink wtetter
- to contnue current actvites and mettods
- are ttere opportunites to modify actvites
- to add new actvites to telp tte organizaton eter actieve its goals in response to ctanging
conditons
efectve udget processes telps witt
- communicaton ott from tte top down and tte otom up
- coordinate actvites across tte organizaton
- antcipate company’s need for cast
Limitations of the advantages of budgeting
Budget participation and acceptance of the budget
Main factors afectng udget acceptance
- perceived attude of top management
- tte level of partcipaton in tte udget process
- degree of alignment etween tte udget and otter performance goals
to limit negatve attudes and improve quality of planning decisions Partcipatve udgetng
Partcipatve udgetng = udgets formulated witt tte actve partcipaton of all afected employees
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 simonesnepvangers. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.84. You're not tied to anything after your purchase.
