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  • Created by: Benjhigg
  • Created on: 07-04-15 14:41
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  • Budgeting
    • Budgeting process
      • 1. Setting an accurate and reliable budget is key to success for a business
        • 2. All budgets should be related to the organisation's objectives
          • 3. Market research should be carried out to assess demand and cost
    • Budget methods
      • Sales revenue based budgeting
      • Competitor based budgeting
      • Zero budgeting
        • Trying to get to the figure zero
      • Objective based budgeting
      • Previous year budgeting
        • Does not include inflation or change to business
    • Why budget?
      • Provides focus and direction
      • Em-powerment and increased motivation
      • Enables financial support planning
      • improves efficiency
      • Enables managed and controlled spending
    • Potential issues
      • Unforeseen changes
      • Managers lack knowledge to make decisions
      • Inflation increases costs
      • Making budgets is time consuming
    • Income budget
      • Planned inflow, for an organisation, over a set period of time
    • Expenditure budget
      • Planned outflow, for the organisation, over a set period of time
    • Profit budget
      • Planned profit over a set period of time, for the organisation.


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