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Why Budget

The document outlines the importance of budgeting for planning, decision-making, performance monitoring, and goal communication. It describes the master budget, which includes an operating budget focused on income and a financial budget centered on cash flows. Additionally, it highlights the review process involving alignment with strategic, intermediate, and operational plans.

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afshanamin
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15 views1 page

Why Budget

The document outlines the importance of budgeting for planning, decision-making, performance monitoring, and goal communication. It describes the master budget, which includes an operating budget focused on income and a financial budget centered on cash flows. Additionally, it highlights the review process involving alignment with strategic, intermediate, and operational plans.

Uploaded by

afshanamin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Why Budget?

Planning and decision making

Monitor Performance

Communicate goals

Master Budget:

Overall Financial Plan for Organization

2 key areas of master budget:

Operating budget (budgeted income statement) sales budget, production


budget

 Multiple smaller activities

Financial budget (balance sheet)

Focus on cash flows of the org

Cash budget-> Capital budget

|budgeted balance sheet budgeted statement of cash flows

Review Process:

Review with budget committee to view the alignment with strategic goals
and objectives

 Strategic Plan & budget (Senior Level)-Long term


 Intermediate Plan & budget (Middle Level)-Mid Term
 Operational Plan & budget (lower level)-Short Term

District sales manager budget: volume, price and sales mix

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