COMM 1102 Lecture 9: COMM 1102 CHAPTER 9
15 Oct 2018
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Document Summary
A budget is a planning tool that most companies use - for a year (or couple) - prepare a budget for each of the 12 months of the year - in order to compare each month. Compare actual results to the budget, by doing this every month, gives you an idea of whether or not you are on track. Helps show goals and objectives for the company. Prepared each and every month to compare how you"re doing and make changes if results are off track. A budget is simply a translation of the company"s operating plans into financial terms. A company will set out their operating plans, and then they will translate these into dollars and cents (financial terms) Way to communicate to the entire company - where they are going to spend their money. About the future - they are based on assumptions - it"s an estimate, forecast.
