Capitulo 1

Capitulo 1

1. Setting budget goals too tightly

   • Employees and managers may become discouraged if budgeted goals are set too high. That is, if budgeted goals are viewed as unrealistic or unachievable, the budget may have a negative effect on the ability of the company to achieve goals.

2. Setting budget goals too loosely

   • it is desirable to establish attainable goals, it is understandable to plan budget goals that are too easy.

3. Financial budgets

   • While the operating budgets reflect the operating activities of the company, the financial budgets reflect the financing and investing activities.

4. Cash budget

   • caSH BUDGET ESTIMATES THAT EXPECTED RECEIPTS (INFLOWS) AND PAYMENTS (OUTFLOWS ) OF CASH FOR A PERIOD OF TIME. THE CASH BUDGET INTEGRATED WITH THE VARIOUS OPERATING BUDGET.

5. Capital expenditures budget

   • The capital expenditures budget summarizes plans for acquiring fixed assets. such expenditures are necessary as machinery and other fixed assets wear out or become obsolete.