What's the ticket on this?
The excess of sales over variable cost of goods sold.
Manufacturing Margin
A portion of a company that can be analyzed using sales, costs, and expenses to determine its profitability.
Market Segment
Excess resources set within a budget to provide for uncertain events.
Budgetary slack
A concept of budgeting that requires managers to estimate sales, production, and other operating data as though operations are being started for the first time.
Sales budget
A budget summarizing plans for acquiring fixed assets.
Capital Expenditures budget
For a level of management, the costs that can be influenced (increased, decreased, or eliminated) by management at that level.
Controllable Cost
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But you say he's just a friend
A budget that estimates the expected receipts (inflows) and payments (outflows) of cash for a period of time.
Cash budget
A budget of estimated units to be manufactured to meet budgeted sales and desired inventory levels.
Production budget
A condition that occurs when individual objectives conflict with organizational objectives.
Goal conflict
For a level of management, the costs that another level of management controls.
If units manufactured = units sold, then
Ab costing OI = V costing OI
A budget that shows the expected results of a responsibility center for several activity levels.
Flexible Budget
A common approach to budgeting that starts with last year’s budget and revises it for actual results and expected changes for the coming year.
Incremental budgeting
A budget of the estimated direct materials, direct labor, and factory overhead consumed by sold products.
Cost of goods sold budget
The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.
Absorption Costing
Biz Markie's government name
Marcel Theo Hall
A budget that shows the expected results of a responsibility center for only one activity level; it is not changed, even if the activity changes.
Static budget
An approach to budgeting in which employees work with their supervisors to develop performance metrics and budgeted goals that are used to measure employee success.
Participative budgeting
A budgeted balance sheet made up of estimated amounts for a future period based on the operating and financial budgets of the master budget.
Pro forma balance sheet
The concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead). Also called direct costing.
Variable Costing
Term for earnings before interest, taxes, depreciation, and amortization; operating income expressed by adding back depreciation and amortization expense.
EBITDA
A concept of budgeting that requires managers to estimate sales, production, and other operating data as though operations are being started for the first time.
zero-based budgeting
A method of budgeting that provides for maintaining a 12-month projection into the future.
Continuous budget
An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.
Responsibility Center