Ohne Titel

Folie 1

• Budgeting

Folie 2

• INTRODUCTION
• 1.
• The budget is one the
• tools that accountants use help management plan and control business
• operations. 2. A budget is a quantitative statement of management’ plans
• and is used to translate those plans into operational terms. 3. Thus, the budget is a plan of
• action. 4. The budget can be used as control tool by comparing actual results with expected
• results and then taking action to modify actions so that the plan is achieved.
• 5.
• A budget is derived from
• management’s goals and objectives. 6. The starting point for the
• preparation of a budget is the strategic plan. 7. The strategic plan identifies
• activities and operations that the organization will engage in over the long term.
• 8. Figure 14.1 shows the relationship between the strategic plan and the
• budget.
• Figure
• 14.1 Plans and budgets
• STRATEGIC PLAN
• LONG-TERM OBJECTIVES
• SHORT-TERM OBJECTIVES
• SHORT-TERM PLAN
• BUDGET
• 9ivity