1 A BUDGET IS A DETAILED PLAN OUTLINING THE TION, RAW MATERIALS, DI...

9- - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH09 PROFIT PLANNING
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH09 PROFIT PLANNING

9-1

A budget is a detailed plan outlining the

tion, raw materials, direct labor, manufacturing

acquisition and use of financial and other re-

overhead, selling and administrative expenses,

sources over a given time period. As such, it

represents a plan for the future expressed in

and inventories. The master budget generally

formal quantitative terms. Budgetary control

also contains a budgeted income statement,

involves the use of budgets to control the actual

budgeted balance sheet, and cash budget.

activities of a firm.