ECON1010 Lecture Notes - Financial Statement, Income Statement
Lecture 3 - Developing a Master Budget (Online)
Friday, 9 March 2018
12:00 PM
<<L03- Lecture Developing a Master Budget (1).pptx>><<audio-vga.m4v>>
• Master budget is the overall structure a business uses to organise its budgeting process
• Requires forward planning and thinking through how the business will achieve its goal/s
• It's a set of interrelated reports (budgets) and shows relationships in a business:
o Goals to be met
o Activities to be performed in its operating cycle
o Resources to be used
o Expected financial results
• A retail business master budget would include:
o Sales budget
o Purchases budget
o Selling expenses budget
o General and admin expenses budget
o Cash budget
o Projected income statement
o Projected balance sheet
• This master budget developed in powerpoint/video
• Information on goals and objectives of business must be gathered
• Assumptions are made based on historical financial statements, a discussion with the
owner/s and other economic resources
find more resources at oneclass.com
find more resources at oneclass.com
