ACC 100 Lecture Notes - Lecture 7: Advanced Spaceborne Thermal Emission And Reflection Radiometer, Cash Cash

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8 Aug 2016
Department
Course
Chapter 9 Budgeting, Production, Cash
and Master Budget
BUDGETS
Help business owners and managers to plan ahead and later, exercise control by comparing
what actually happened to what was expected according to the budget.
Key component of planning
Financial plans for the future
Identify objectives ad actions needed to achieve them
Before a budget is prepared a strategic plan should be developed
Advantages
Force managers to plan
Provide information to improve decision making
A standard for performance evaluation
Improve communications and coordination
BUDGETING, PLANNING AND CONTROL
Planning and control are tied together
Planning – looking ahead to see what actions should be taken to realize particular goals
Control – looking backward determining what actually happened and comparing it with the
previously planned outcome
STRATEGIC PLAN
Identifies strategies for future activities and operations
Long and short term objectives
Objectives form the basis of the budget
MASTER BUDGET
Comprehensive financial plan for the organization as a whole
Typically, the master budget is for a one-year period
Yearly budgets are broken down into quarterly and monthly budget
BUDGET COMMITTEE
Reviews the budget
Provide policy guidelines and budgetary goals
Resolves differences that arise as the budget is prepared
Approves the final budget
Monitors actual performance as the year unfolds
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