1. Accounting for Managerial Plan & Control Section:. 201 Name:
Accounting for Managerial Plan & Control Section: Name: Layla AlSarraf
ID#:

2. Budgeting is a common accounting tool that companies use for implementing strategy.
Management uses budgets to communicate directions and goals throughout a company.
Budgets turn managers’ perspectives forward and aid in planning and controlling the actions managers must undertake to satisfy their customers and succeed in the marketplace.
Budgets provide measures of the financial results a company expects from its planned activities and help define objectives and timelines against which progress can be measured.
Through budgeting, managers learn to anticipate and avoid potential problems.

3. Question 6-3
“Strategy, plans, and budgets are unrelated to one another.” Do you agree? Explain.

4. Strategy, plans, and budgets are interrelated and affect one another.
Answer 6-3
Strategy, plans, and budgets are interrelated and affect one another.
Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.
Strategic analysis underlies both long-run and short-run planning.
In turn, these plans lead to the formulation of budgets.
Budgets provide feedback to managers about the likely effects of their strategic plans.
Managers use this feedback to revise their strategic plans.

5. Exhibit 6-1 Strategy, Planning and Budgets:

6. Thank You for Listening