Financial Decision making (BUS 317) GCU Final Exam (PowerPoints)

Financial Decision making (BUS 317) GCU Final Exam
(PowerPoints)




Master budget classes


oOperating budgets.
• Result in the preparation of budgeted income statement.
• Establish goals for the company’s sales and production
personnel. oFinancial budgets.
• Include capital expenditures budget, cash budget, and budgeted balance
sheets.
• Focus primarily on the cash resources needed to fund expected
operations and planned capital expenditures.

What is a sales forecast?


shows potential sales for the industry and a company's expected share of
such sales.

What is an operating budget


are used as the basis for the preparation of the budgeted income statement.


What is a master budget


is a set of interrelated budgets that constitutes a plan of action for a
specified time period.

, What is long range planning


identifies long-term goals, selects strategies to achieve these goals, and
develops policies and plans to implement the strategies.


Lower-level managers are more likely to perceive results as fair and
achievable under


Participative budgeting approach


What do financial budgets focus on


primarily on the cash resources needed to fund expected operations and
planned capital expenditures.


Production budget equation


Expected unit sales + desired ending finished goods units - beginning
finished goods units= required production units


Direct materials required for production formula


units to be produced x direct materials units per unit of unit
produced= direct materials units required for production


Direct material units to be purchased forumla


Direct materials units required for production+ desired ending direct
material units-beginning direct material units= direct materials units to
be purchased