BUS 254 Lecture 5: BUS 254 (5)

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 254
• Professor: Masood Kamlani

Document Summary

Industry trends: market research studies, anticipated advertising & promotion, previous market share, change in p, tech developments, budget development starts w/budget committee who acts as review board where managers can defend their budget goals & requests. Lower-level managers have more detailed knowledge of their specific area & then should be able to provide more accurate budgetary estimates. Important basis for evaluation performance: for a budget to be effective, top management must completely support the budget, manager is likely to respond ly if top management uses the budget exclusively to assess blame. Individual budgets that result in the preparation of the budgeted i/s: financial budgets, capital expenditures budget, cash budget, budgeted b/s, focus primarily on cash needs to fund operations & capital expenditures. Inventory budget = most difficult: derived from budget + desired change in ending fin g inv, be careful of non-cash items in moh budget, particularly gains/losses on sales & depreciation.