Briefly explain “Self-Impose Budget or Participative” and “Master Budget”.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Briefly explain “Self-Impose Budget or Participative” and “
Here are given two terms.
(1) Self imposed budget or participative budget
(2) Master budget
Lets start with basic understanding in step 1 and then will understand it in brief in step 2.
Self imposed or participative budget is a budget is a most efficient type of budget.
This is because in preparation of this budget, all the manager comes together, prepares it together and make firm decision to adhere the budget. Special thing about this type of budget is that, it is not directly imposed by the management on the managers but they together prepares it.
On other hand,
Master budget is as its name suggest master of all budgets. It is prepared by the management to see overall picture of the organization future.
This type of budget then divided into various parts and make individual budget for each manager to adhere.
Step by step
Solved in 2 steps
