Chapter 21

Budgeting Systems for Management Accounting Warren / Reeve / Duchac Exercise 21-1 Exercise 21-3 Exercise 21-9 Exercise 21-12 Exercise 21-18 Problem 21-2A Problem 21-1B Problem 21-2B

Types of Budgets

Capital Budget
this budget considers balance sheet items and long-range expenditures projected to improve operating capacity and efficiency

Operating Budget
projects sales revenues and operating costs over a specified operating period

Master Budget
comprehensive budget that includes all of the operating departments or division of the organization

Static Budget
forecasts 1 level of activity and shows a static projection of estimates forecasted

Flexible Budget
forecasts several levels of operating activity for the coming period