The third task is a continuation of the study material which will teach the management trainees to evaluate how planning tools for accounting help to solve problems and support organisations with sustainable success (D3). This will include an explanation of the advantages and disadvantages of the budgetary tools by analysing of the use of different planning tools and their application for preparing and forecasting budgets (P4, M3). The study material will go onto look at how to respond to financial problems, and how management accounting can lead organisation to sustainable success (M4). This will include a comparison of how organisations are adapting management systems to respond to financial problems
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.
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