S9-3 Understanding key terms and definitions (Learning Objectives 1& 2) Listed next are several terms. Complete each of the following statements with one of these terms. You may use a term more than once, and some terms may not be used at all. Budget committees Participative budgoting Slack Financial budgets Production budget Master budget Rolling budget Variance Operating budgets Safety stock is extra inventory of finished goods that is kept on hand in case demand is higher than predicted or problems in the factory slow production. Managers will sometimes build b. into their budgets to protect themselves e. The sales budget and production budget are examples of. is used to forecast how many units should be made to meet the sales is a budgeting process that begins with departmental managers and flows up is a budget that is continuously updated by adding months to the end of the is the difference between actual and budgeted figures and is used to through middle management to top management evaluate how well the manager controlled operations during the period. is the comprehensive planning document for the entire organization. i. j. when an organization builds its budgets from the ground up, it is using These budgets, project both the collection and payment of cash and forecast the company's budgeted balance sheet. is the process of setting long-term goals that may extend several years into are often used by companies to review submitted budgets, make revisions as needed, and approve the final budgets