budgeted cash flow statment

Question 1

Budgeting

Answer 1

The pricess if oredicting / estimating the financial consequencesof future events

Question 2

Uses if BCFS: planning

Answer 2

allos managment to plan their desires outcomes by setting goals + put specific actions into place to ensure these goals are met + allos managmet to prepare in advance for an expectedd increase or decrease in cash

Question 3

Uses of BCFS: control

Answer 3

It provies a framwork for the budgeted period setting targets against which to work / allos goas to be monitored + allows for variance reports to be drawn up at the end of the period to hold accountable

Question 4

Uses for BCFS: decision making

Answer 4

Comparing budgeted reports against actual reports allows for comparisons against set benchmarks and for problem areas to be identified and addressed in the next budgeting process.