Budgeting and Financial Management: Terms and Concepts, Quizzes of Military Strategy and Training

Download Budgeting and Financial Management: Terms and Concepts and more Quizzes Military Strategy and Training in PDF only on Docsity! TERM 1 when leading the air force, what is the main goal DEFINITION 1 trust within teammates TERM 2 when leading a team whats the first step DEFINITION 2 team building exercises TERM 3 The operating and cash budgets contain DEFINITION 3 Operating Budget sales budget ($) purchases budget (units) operating expenses budget (DM,DL,OH,SAG) budgeted income statement Cash budget capital budget budgeted balance sheet TERM 4 define: master budget and what it includes DEFINITION 4 profit plan- summarizes ALL planned activities . Includes: Operating Budget Cash Budget Pro-forma Financial Statements TERM 5 after we prepare the schedules for each month of the planning horizon, we prepare the DEFINITION 5 budgeted income statement. TERM 6 5 budgeting uses DEFINITION 6 Planning Communicating and coordinating Allocating Controlling Evaluating TERM 7 3 advantages to budgetings DEFINITION 7 Forces managers to think ahead Implicitly defines expectations Assists managers in coordinating their efforts so the plans of the organization's subunits are in line with organizations goals TERM 8 nowadays companies try to get everyuone involved in the budgeting process- WHAT ARE ADV AND DISADV DEFINITION 8 Adv More accurate Motivates employees- goal congruence Educates employees Disadv Too relaxed, not challenging compensation based on budget and people will shift (cheat) income each year TERM 9 3 types of planning DEFINITION 9 Strategic Planning: overall long-term focus (open new TZ across country) Tactical Planning: developing concrete actions to achieve plan (includes budgeting process)-ex. how packets made Budget: written plan for how we are gonna get shit done TERM 10 top-dwon vs. bottom up budgeting DEFINITION 10 Top-down: management down to employees Bottom-up: from employees up to management TERM 21 for direct materials, the PRICE variance is dependent upon the amount of materials (purchased or used) DEFINITION 21 purchased! TERM 22 T/F: depreciation expense is on cash budget DEFINITION 22 FALSE depreciation not cash TERM 23 summary in words of variances: a) Master Budget Variance b) Sales Activity Variance c) Flexible Budget Variance DEFINITION 23 a) MBV: diff b/w actual results and those anticipated by MB b) Sales Activity Variance: diff b/w master budget and flexible budget c) Flexible Budget Variance: diff b/w actual and those anticipated by flexible budget TERM 24 flexible budget adjusts for the DEFINITION 24 actual activity level TERM 25 for the DM usage variance, we have to use what we purchased/used DEFINITION 25 USED!