ACCT 001 Lecture 30: ACCT 001 - LEC30
17 Sep 2020
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Budgeting systems: budgeting systems vary among businesses because of such factors as organizational structure, complexity of operations, and management philosophy. Differences in budget systems are even more significant among different types of businesses, such as manufacturers and service businesses: the budgetary period for operating activities usually includes the fiscal year of a business. A year is short enough that future operations can be estimated fairly accurately, yet long enough that the future can be viewed in a broad context. In life cycle budgeting, the full length of a project defines the budget period. This method can incorporate all phases of a product from r&d through phase-out and recycling. Continuous budgeting is a variation of fiscal-year budgeting that maintains a rolling 12-month period. Budgeting systems: developing budgets for the next fiscal year usually begins several months prior to the end of the current year.
