A number of terms are listed below:
Budget constraint(s) .......... Budgetary slack
Cash cycle .............. Controllable cost
Investment budget .......... Operating cycle
Rolling budget ............. Self-liquidating cycle
REQUIRED
Select the terms from the above list to complete the following sentences.
A __________, also known as an _________________, is the movement of cash arising from business functions to inventories, to receivables, and back to cash when outputs are sold. It is a __________________________ where all costs of a corporation are recovered when output is sold. ______________ is the practice of underestimating revenue and overestimating costs to make the ___________ less challenging. Once the corporate budget is produced, all managers make a commitment to reach budget targets. They are responsible for _____________that must be at or below the budget constraint during each reporting time period. Some companies produce a ______________ that adds a reporting time period as one is completed. An _______________affects the flow in and out of cash either to make the investment or to pay to finance it.