4-21

Planning units produced each month in order to satisfy Sales Budget predictions as well as ensuring ending inventory levels are satisfactory

• Cash Budget

• Selling & Administrative Expense Budget

• Production Budget

Production budget drives the

• RM Budget & WIP Budget

• DM Purchases Budget, DL Budget & the MOH Budget

• WIP Budget & MOH budget

• Master Budget

Planning expected S&A expenses and related cash disbursements for S&A expenses

• Selling & Administrative Expense Budget

• Cash Budget

• Production Budget

Expected cash disbursements will flow into the

• Selling & Administrative Expense Budget

• Production Budget

• Cash Budget

S&A budget data will flow into the

• Statement of Cash Flows

• Pro-Forma Income Statement

• Balance Sheet

• Retained Earnings

Plans for any potential cash shortages so that the organization can pro-actively seek alternative cash management planning procedures

• Selling & Administrative Expense Budget

• Production Budget

• Cash Budget

At the end of the period, we compare Flexible Budgets to Actuals in a Performance Evaluation Report, calculate the differences for each line item and determine materiality for additional investigation and responses set threshold. 

• Variance Analysis Cycle

• Differences Analysis Cycle

• Accounting Cycle

• Budget Analysis Cycle

In order to create an appropriate Performance Evaluation Report, it is necessary to build a _____ at the end of the period.

• Production Budget

• Cash Budget

• Flexible Budget

A Flexible budget is created at the _____ of the period

• End

• Beginning

The Flexible Budget uses the revenue and expense formulas created during the

• Planning Budget stage

• Actual Budget Stage