文档介绍：Lecture 2
Budgeting planning and Control
& CVP Analysis
The first month
The second month
The third month
The result over the next two month is :
He has no money to EAT !!
The importance of BUDGET AND PLANNING
Budgeting planning and Control
© 2009 Pearson Prentice Hall. All rights reserved.
Part 1: What is BUDGET?
Budget defined
(1)The quantitative expression of a proposed plan of action by management for a specified period, and
(2)An aid to coordinating what needs to be done to implement that plan
May include both financial and non-financial data
Strategy, Planning and Budgets, Illustrated
Master Budget
A master budget sets out management’s plan(in $ terms) for the whole firm, and includes:
Operating Budget :
building blocks leading to the creation of the Budgeted e Statement
Financial Budget
building blocks based on the Operating Budget that lead to the creation of the Budgeted Balance Sheet and the Budgeted Statement of Cash Flows
Master Budget
Operating Budget
Financial Budget
Sales
Production
DM(p/u)
DL
OH
Selling &adm expenses
Capital expenditure
Budgeted BS & Budgeted SCF
Budgeted IS