1. A ________________
is a formal written statement of management's plans for the future expressed in financial terms.
2. ________________ is the process used to develop an organization's budgets. It is an integral part of planning.
3. A ___________________ is a budget prepared for one level of activity, for example a particular volume of production or level of sales.
4. A __________________ is simply several static budgets covering a range of activity within which the organization may operate. For example, a company may prepared number of sets of future financial statements (i.e.,
pro forma
financial statements) for a number of expected sales levels.
5. __________________________ sets the initial figures for each activity to zero. To receive funding from the budgeting process, each activity must be justified in terms of its continued usefulness and the resources needed for that activity.
6. ___________________ are usually developed for a specified period of time. Short-range budgets cover a month, a quarter or a year.
7. ___________________ are continually updated by periodically adding a new incremental time period and dropping the period just completed.
8. A _________________ is a combination of all the budgets of an organization, dealing with all phases of the operations of the business for a particular period of time.
9. The ____________________ quantifies the capital investment decisions determined in the organization's long term plans.