02 May QuestionBudgeting Discussio
Question
Budgeting Discussion
In this chapter you have learned about the budgeting process and about the various types of budgets used in business. Review the following scenario and respond to the questions listed below it in your original post.
Scenario
In this discussion, pretend you are the Chief Financial Officer (CFO) of a manufacturing company. One day, a college accounting student contacts you and requests an interview. The student says that his Managerial Accounting class is studying budgets. One of their assignments requires them to interview a financial officer about the budgeting process. Of course you agree to the interview!
Part 1: (25 points for part 1)
The accounting student comes into your office with a prepared list of questions. As the CFO, how would you respond to each of these items?
- Briefly identify the type of company you work for and its core business.
- How does the company set its overall budget goals?
- Who participates in the process and how much input does each of the participants have?
- Describe the flow of budget data in the organization.
- How are the budgets used in the organization?
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