Exercises 1. At the beginning of the school year, Bailey Eyelash decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enoug cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition The following information relates to the budget: Cash Inflow/outflow Cash balance, September 1 (from employment) Monthly Netflix subscription Additional entertainment each month Fall tuition payment in September Monthly rent Dollar Amount $6,000 14 250 3.500
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.
Budget - It is an estimation of Income and expense over a given period of time which is prepared by the businesses, government organization to plan or manage the business.
There are two types of Budget
- Flexible Budget - It is the budget which is based of certain level of output, it is prepared on the basis of last year estimation subject to change as per the current scenario. It is also called variable budget, This is budget which is changed as per the requirement.
- Static Budget - This is the budget which forecast the revenue and expense but it can not be changed even with the change in business activity. This is the budget which is majorly used by the Non profit organization, educational institution, and government organization.
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