Do you agree with this statement? Explain why or why not
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.
“Budgeting is the same across different organisations and industries, so organisational strategy, industry and the broader goals and objectives of a business are not of much importance in the budgeting process”. Do you agree with this statement? Explain why or why not
So far this questioned was answered before with:
The statement cannot be agreed, as budget preparations vary from company to company as per the company's goals and strategies. Budgeting is estimated standards set which acts like an yardstick for respective departments (purchase, sales, production etc.) to perform. These budgets serve as a guidelines or target for the department to achieve effective and efficient output. These budgets are prepared analysing the past performance and other factors such as capacity and procedures and policies of the organisation
I feel this needs to be explained more - could you please write another 100 words explaining this question please :))
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