Master Budget & Responsibility Accounting Learning Objectives

Chapter 20 Master Budget and Responsibility Accounting (Course Objective 7: By the end of this course, students will be able to help in the planning and control functions in a firm using budgeting and variance analysis)

1. Define budgeting, and discuss its role in planning, controlling, and decision making.

2.   Prepare the operating budget, identify its major components, and explain the interrelationships of the various components.

3.   Identify the components of the financial budget, and prepare a cash budget.

4.   Describe budgets for merchandising and service firms.