{"id":2074,"date":"2015-12-11T17:35:31","date_gmt":"2015-12-11T17:35:31","guid":{"rendered":"https:\/\/courses.candelalearning.com\/finaccountingvccsx2\/?post_type=chapter&p=2074"},"modified":"2015-12-15T00:31:17","modified_gmt":"2015-12-15T00:31:17","slug":"glossary","status":"web-only","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/chapter\/glossary\/","title":{"raw":"Glossary","rendered":"Glossary"},"content":{"raw":"\r\n

\u00a0GLOSSARY<\/h3>\r\n\r\n

Budget<\/span><\/strong> A plan showing a company's objectives and proposed ways of attaining the objectives. Major types of budgets are (1) master budget, (2) responsibility budget, and (3) capital budget.<\/p>\r\n

Budgeting<\/span><\/strong> The coordination of financial and nonfinancial planning to satisfy an organization's goals.<\/p>\r\n

Budget variance<\/strong><\/span> The difference between an actual cost incurred (or revenue earned) at a certain level of operations and the budgeted amount for the same level of operations.<\/p>\r\n

Cash budget<\/strong><\/span> A plan indicating expected inflows (receipts) and outflows (disbursements) of cash; it helps management decide whether enough cash will be available for short-term needs.<\/p>\r\n

Financial budget<\/strong><\/span> The projected balance sheet portion of a master budget.<\/p>\r\n

Fixed costs<\/strong><\/span> Costs that are unaffected in total by the relative level of production or sales.<\/p>\r\n

Flexible operating budget<\/strong><\/span> A special budget that provides detailed information about budgeted expenses (and revenues) at various levels of output.<\/p>\r\n

Just-in-time inventory system<\/span><\/strong> Provides that goods are produced and delivered just in time to be sold.<\/p>\r\n

Master budget<\/span> <\/strong>The projected income statement (planned operating budget) and projected balance sheet (financial budget) showing the organization's objectives and proposed ways of attaining them; includes supporting budgets for various items in the master budget; also called master profit plan. The master budget is the overall plan of the enterprise and ideally consists of all of the various segmental budgets.<\/p>\r\n

Participatory budgeting<\/span><\/strong> A method of preparing the budget that includes the participation of all levels of management responsible for actual performance.<\/p>\r\n

Planned operating budget<\/span><\/strong> The projected income statement portion of a master budget.<\/p>\r\n

Production budget<\/span><\/strong> A budget that takes into account the units in the sales budget and the company's inventory policy.<\/p>\r\n

Variable costs<\/span> <\/strong>Costs that vary in total directly with production or sales and are a constant dollar amount per unit of output over different levels of output or sales.<\/p>\r\n

Zero-base budgeting<\/span><\/strong> Managers in a company start each year with zero budget levels and must justify every dollar that will appear in the budget.<\/p>\r\n\r\n<\/div>\r\n","rendered":"

\n

\u00a0GLOSSARY<\/h3>\n

Budget<\/span><\/strong> A plan showing a company’s objectives and proposed ways of attaining the objectives. Major types of budgets are (1) master budget, (2) responsibility budget, and (3) capital budget.<\/p>\n

Budgeting<\/span><\/strong> The coordination of financial and nonfinancial planning to satisfy an organization’s goals.<\/p>\n

Budget variance<\/strong><\/span> The difference between an actual cost incurred (or revenue earned) at a certain level of operations and the budgeted amount for the same level of operations.<\/p>\n

Cash budget<\/strong><\/span> A plan indicating expected inflows (receipts) and outflows (disbursements) of cash; it helps management decide whether enough cash will be available for short-term needs.<\/p>\n

Financial budget<\/strong><\/span> The projected balance sheet portion of a master budget.<\/p>\n

Fixed costs<\/strong><\/span> Costs that are unaffected in total by the relative level of production or sales.<\/p>\n

Flexible operating budget<\/strong><\/span> A special budget that provides detailed information about budgeted expenses (and revenues) at various levels of output.<\/p>\n

Just-in-time inventory system<\/span><\/strong> Provides that goods are produced and delivered just in time to be sold.<\/p>\n

Master budget<\/span> <\/strong>The projected income statement (planned operating budget) and projected balance sheet (financial budget) showing the organization’s objectives and proposed ways of attaining them; includes supporting budgets for various items in the master budget; also called master profit plan. The master budget is the overall plan of the enterprise and ideally consists of all of the various segmental budgets.<\/p>\n

Participatory budgeting<\/span><\/strong> A method of preparing the budget that includes the participation of all levels of management responsible for actual performance.<\/p>\n

Planned operating budget<\/span><\/strong> The projected income statement portion of a master budget.<\/p>\n

Production budget<\/span><\/strong> A budget that takes into account the units in the sales budget and the company’s inventory policy.<\/p>\n

Variable costs<\/span> <\/strong>Costs that vary in total directly with production or sales and are a constant dollar amount per unit of output over different levels of output or sales.<\/p>\n

Zero-base budgeting<\/span><\/strong> Managers in a company start each year with zero budget levels and must justify every dollar that will appear in the budget.<\/p>\n<\/div>\n","protected":false},"author":9,"menu_order":7,"template":"","meta":{"_candela_citation":"[]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-2074","chapter","type-chapter","status-web-only","hentry"],"part":2061,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":2,"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2074\/revisions"}],"predecessor-version":[{"id":2152,"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2074\/revisions\/2152"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/pressbooks\/v2\/parts\/2061"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2074\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/wp\/v2\/media?parent=2074"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=2074"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/wp\/v2\/contributor?post=2074"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/tcc-financialaccounting\/wp-json\/wp\/v2\/license?post=2074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}