chapter 8 budgeting

Question 1

budget

Answer 1

financial plan of action covering a specific time period

Question 2

budgeting process

Answer 2

1.aims and objectives of a business
2.set production,marketing and financial budgets
3.within budgets be more budgets-health and safety budget
4.procedures for monitoring budgets
5.any variance from predicted budgets
6.experience and knowledge applied

Question 3

financial budgets

Answer 3

production budget-output levels
marketing budget-revenues and costs are combined
financial budget-cash flow forecast

Question 4

benefits of budgeting

Answer 4

1.management control of organisation
2.financial control
3.improve communication systems