Setting and monitoring budgets

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  • Created by: megangore
  • Created on: 04-04-16 12:40

The budget process:

  • Budgets can be drawn up for individuals, projects or departments 
  • Main budget and forecasts focus on key areas such as sales and expenditure 
  • 3 types; sales budget, expenditure budget, master budget

Sales budget:

  • The key budget, as the amount a business sells determines the amount it needs to produce or supply
  • Sales are the main area of generating cash inflows so it is a key indicator of how much a business will receive
  • Difficult to forecast due to changes in trends

Expenditure budget:

  • Once decided on how much it is likely to sell, a…


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