Act 6691- Troy University - Final
(Ch 9-15) (100% Correct Answers)
financial planning and analysis (FP&A) system
A coordinated set of tools that helps managers
assess the company's future and know if they are
reaching their performance goals; includes
subsystems for (1) planning, (2) measuring and
recording results, and (3) evaluating performance.
,FP&A Benefits
- measuring & recording results
-cross dept. communication, goal and expectation
setting.
budget
detailed plan, expressed in quantitative terms, that
specifies how resources will be acquired and used
during a period of time.
Primary purposes of a budget
-planning
-facilitating communication and coordination
- allocating resources
-controlling profit and operations
- evaluating performance and providing incentives
,Master budget (Profit plan)
-Comprehensive set of budgets covering all phases
of an org's operations
-planning component of the FP&A system
- goal to force cross department comm.
budgeted financial statements (pro forma financial
statements)
show how the org's financial statement will appear
at a specified time if operations proceed according
to plan.
Types of budgeted financial statements
- budgeted income statement
, - budgeted balance sheet
- budgeted statement of cash flows
capital budget
- a plan for the acquisition of capital assets
-EX: b&e
fixed-overhead volume variance
The difference between budgeted and applied fixed
overhead.
fixed-overhead volume variance (formula)
Budgeted fixed overhead - applied fixed overhead
overhead cost performance report
(Ch 9-15) (100% Correct Answers)
financial planning and analysis (FP&A) system
A coordinated set of tools that helps managers
assess the company's future and know if they are
reaching their performance goals; includes
subsystems for (1) planning, (2) measuring and
recording results, and (3) evaluating performance.
,FP&A Benefits
- measuring & recording results
-cross dept. communication, goal and expectation
setting.
budget
detailed plan, expressed in quantitative terms, that
specifies how resources will be acquired and used
during a period of time.
Primary purposes of a budget
-planning
-facilitating communication and coordination
- allocating resources
-controlling profit and operations
- evaluating performance and providing incentives
,Master budget (Profit plan)
-Comprehensive set of budgets covering all phases
of an org's operations
-planning component of the FP&A system
- goal to force cross department comm.
budgeted financial statements (pro forma financial
statements)
show how the org's financial statement will appear
at a specified time if operations proceed according
to plan.
Types of budgeted financial statements
- budgeted income statement
, - budgeted balance sheet
- budgeted statement of cash flows
capital budget
- a plan for the acquisition of capital assets
-EX: b&e
fixed-overhead volume variance
The difference between budgeted and applied fixed
overhead.
fixed-overhead volume variance (formula)
Budgeted fixed overhead - applied fixed overhead
overhead cost performance report
