levels of profits. Budget is a quantitative plan for acquiring and using resources over a specific time period to achieve its goals and objectives. Budget is used for two distinct purposes: o Planning which is developing goals and preparing various budgets to achieve those goals o Control which involves steps taken by management to increase the likelihood that all parts of the organization are working together to achieve the goals set down at the planning stage Budgets help to: o Communicate
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Explain the different types of budgets in detail, with the help of suitable examples. In every business planning is the most important function to perform. Planning of different firms depends upon so many factors. Planning is done for comparing the actual performance with standard performance. Budgets are also prepared in advance. Budgets are prepared to check the availability of finance according to the demand of project. So budgetary control is also essential tool of management to control cost
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well as effective management of the funds in a motive of accomplishing the goals and the objectives an organization. It comprises of how to rise capital and how to allocate for instance through budgeting. This does not only cater for the long term budget but also the allocation of funds in the short term. In our discussion we are going to focus on various issues such the various methods used in costing, the budgeting formation and formation process, and the different types of budgeting. The attainment
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Budget For Planning and Control An integral part of the modern business enterprise, budgeting not only aids in the planning process, but it also provides an array of accounting measures that can be used to hold managers accountable for the firm's performance. By Richard Sansing A budget is a projected set of consequences of carrying out planned activity. Firms use budgets to facilitate the communication of specialized information from throughout the firm so that an internally consistent
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| |LO1: Explain how budgets facilitate planning and |A1,B1 | | | | |coordination. | | | | | |LO2: Anticipate possible human relations problems | |25 |40 | | |caused by budgets.
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Healthcare Budget HCS 577 Sharon Gomes- Sanders Healthcare Budget Review of the Patton-Fuller community Hospital's 2009 operating budget and 2010 budget assumptions showed the accuracy of the 2010 operating budget projection. The operating budget is the yearly statement of profit and loss for the organization. Healthcare organizations prepare projected operating budgets for the approval of senior management. At the end of the fiscal year, a detailed accounting provides the report for how the
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starting point of a master budget would be to prepare a budgeted balance sheet. | True | | False | 3. A flexible budget allows management to spend more or less for labor and materials without regard to the amount of production. | True | | False | 4. In a master budget, the sales forecast would be dependent upon the budgeted production figures. | True | | False | 5. Flexible budgets can be prepared for sales budgets but not for productions budgets. | True | | False |
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CASE STUDY 3 - Cash Budget Template SCHEDULE OF EXPECTED CASH COLLECTIONS FROM CUSTOMERS: Credit Sales July August September Total Cash Collections August 12,000 14,400 26,400 SCHEDULE FOR EXPECTED PAYMENTS FOR PURCHASE OF INVENTORY Inventory purchases July August September Total Payments for Inventory Purchases August 32,500 22,500 55,000 Oxford Company Cash Budget For the Two Months of August and September Cash balance Add: Receipts Collections from customers Sale of plant assets
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4 Sales forecasting: 5 Spreadsheets as an aid in the application of sensitivity analysis: 5 Question-2 6 Comments about budget: 6 1. Sales Budget: 7 2. Cash Budget: 7 3. Debtors Budget: 8 4. Creditors Budget: 8 5. Production Cost Budget: 9 6. Raw Materials and finished goods Budget: 9 7. Profit and Loss Account Budget 10 8. Balance Sheet Budget 10 Conclusion: 11 References: 13 Introduction: Budgeting is a process that is necessary not only for planning but also for
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item, it can be found on my shelves. Obviously, accounting will play a major role in the start up of my business. I will need to create a master budget detailing the many different types of budgets, as explained by Kieso (2003). For example, first I need a budget to determine estimated sales. I will also need a merchandise purchases budget to buy the necessary materials
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