| activity-based budgeting (ABB) | The process of developing a master budget using information obtained from an activity-based costing (ABC) analysis.
|
 |
|
|
| base budgeting | The initial budget for each of an organization's departments is set in accordance with a base package under an approach called base budgeting.
|
|
|
|
| base package | An initial budget that includes the minimal resources needed for a subunit to exist at an absolute minimal level.
|
|
|
|
| budget | A detailed plan, expressed in quantitative terms, that specify how resources will be acquired and used during a specified period of time.
|
|
|
|
| budget committee | A group of top-management personnel who advise the budget director during the preparation of the budget.
|
|
|
|
| budget director (or chief budget officer) | The individual designated to be in charge of preparing an organization's budget.
|
|
|
|
| budget manual | A set of written instructions that specify who will provide budgetary data, when and in what form the data will be provided, how the master budget will be prepared and approved, and who should receive the various schedules constituting the budget.
|
|
|
|
| budgetary slack | The difference between the budgetary projection provided by an individual and his or her best estimate of the item being projected. (For example, the difference between a supervisor's expected departmental utility cost and his or her budgetary projection for utilities.)
|
|
|
|
| budgeted balance sheet | Shows the expected end-of-period balances for the company's assets, liabilities, and owners' equity.
|
|
|
|
| budgeted financial statements (or pro forma financial statements) | A set of planned financial statements showing what an organization's overall financial condition is expected to be at the end of the budget period if planned operations are carried out.
|
|
|
|
| budgeted income statement | Shows the expected revenue and expenses for a budget period, assuming that planned operations are carried out.
|
|
|
|
| budgeted schedule of cost of goods manufactured and sold | Details the direct material, direct labor, and manufacturing overhead costs to be incurred and shows the cost of the goods to be sold during a budget period.
|
|
|
|
| budgeted statement of cash flows | A budget schedule providing information about the expected sources and uses of cash for operating activities, investing activities, and financing activities during a particular period of time.
|
|
|
|
| budgeting system | The set of procedures used to develop a budget.
|
|
|
|
| capital budget | A long-term budget that shows planned acquisition and disposal of capital assets, such as land, buildings, and equipment.
|
|
|
|
| cash budget | Details the expected cash receipts and disbursements during a budget period.
|
|
|
|
| cash disbursements budget | A schedule detailing expected cash payments during a budget period.
|
|
|
|
| cash receipts budget | A schedule detailing the expected cash collections during the budget period.
|
|
|
|
| direct-labor budget | A schedule showing the number of hours and cost of direct labor to be used in production of services or goods during a budget period.
|
|
|
|
| direct-material budget | A schedule showing the number of units and the cost of material to be purchased during a budget period.
|
|
|
|
| e-budgeting | An electronic and enterprise-wide budgeting process in which employees throughout the organization can submit and retrieve budget information electronically via the Internet.
|
|
|
|
| financial budget | A schedule that outlines how an organization will acquire financial resources during the budget period (for example, through borrowing or sale of capital stock).
|
|
|
|
| financial planning model | A set of mathematical relationships that express the interactions among the various operational, financial, and environmental events that determine the overall results of an organization's activities.
|
|
|
|
| firewall | A computer or information router placed between a company's internal network and the Internet to control and monitor all information between the outside world and the company's local network.
|
|
|
|
| incremental package | A budget detailing the additional resources needed to add various activities to a base package.
|
|
|
|
| manufacturing-overhead budget | Shows the cost of overhead expected to be incurred in the production process during the budget period.
|
|
|
|
| master budget (or profit plan) | A comprehensive set of budgets that covers all phases of an organization's operations for a specified period of time.
|
|
|
|
| operational budgets | A set of budgets that specify how operations will be carried out to produce an organization's services or goods.
|
|
|
|
| padding the budget | The process of building budgetary slack into a budget by overestimating expenses and underestimating revenue.
|
|
|
|
| participative budgeting | The process of involving people throughout an organization in the budgeting process.
|
|
|
|
| production budget | A schedule showing the number of units of services or goods that are to be produced during a budget period.
|
|
|
|
| profit plan (or master budget) | A comprehensive set of budgets that cover all phases of an organization's operations during a specified period of time.
|
|
|
|
| rolling budget (also revolving or continuous budget) | A budget that is continually updated by adding another incremental time period and dropping the most recently completed period.
|
|
|
|
| sales budget | A schedule that shows the expected sales of services or goods during a budget period, expressed in both monetary terms and units.
|
|
|
|
| sales forecasting | The process of predicting sales of services or goods. The initial step in preparing a master budget.
|
|
|
|
| selling, general, and administrative (SG&A) expense budget | A schedule showing the planned amounts of selling, general, and administrative expenses during a budget period.
|
|
|
|
| zero-base budgeting | A budgeting approach in which the initial budget for each activity in an organization is set to zero. To be allocated resources, an activity's continuing existence must be justified by the appropriate management personnel.
|