Management Accounting Certificate Course on Alison.com Topic Preview
Management Accounting certificate course on Alison topic preview:
Budget
Quantitative representation of a plan for a defined period of time. It may include planned sales volumes and revenues; resource quantities, costs and expenses; assets, liabilities and cash flows.
Functional budgets and the master budget
A master budget consolidates the departmental or activity budgets for all the responsibility centres within an organisation. The structure of a budget depends on the operating model employed by the organisation.
Principal budget factor
The principal budget factor is identified as the input or process that is the primary organisational limiting factor. Once the principal budget factor is identified, the associated budget is prepared as a basis for the preparation of all other budgets.
Cash budgets and cash flow forecasts
A cash flow forecast is an estimate of cash receipts and payments for a future period under existing conditions. Cash budgets are used to: assess and integrate operating budgets; plan for cash shortages and surpluses, and compare with actual spending. There are two methods that can be used to create a cash budget: a receipts and payments forecast; or a balance sheet forecast.
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