Flashcards
Budgets
Cards in this deck (9)
- 1BudgetFinancial or quantitative statement approved for a defined period of time for the policy to be pursued in that period for the purpose of attaining objectives
- 2Budget controlEstablishing budgets with executives and continuously comparing planned budgets to actual spending
- 3Reasons/objectives for budgetsPlanning
Coordination between marketing and PD
Control - metrics
Motivation - budget holders involvement - 4Methods for preparing/allocating budgets
- 5LiquidityHow quickly an asset can be bought or sold in the market without affecting price.
Cash is most liquid
Assets are not liquid
Assets such as houses are really unliquid - 6Budget periodsShort term - 1-3 months
Annual
Long term - strategic plan over several years - 7Principle budget factorLimiting factor for expansion of business
- 8Types of budgetOperating budget
Capital budget - 9Steps of preparing a budget1) Ascertain organisational objectives
2) Prepare forecasts
3) Determine enterprise policies - e.g. product range, investments
4) Identify principle budget factor
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- Engineering Flashcards on Budgets, created by Emily Mepsted on 27/04/2018.
- Created by
- Emily Mepsted
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