Features of Flexible Budget
Main Features of Flexible Budget A budget may be defined as a quantitative expression of a business plan for a specified future period, usually a…
Accounting
Sales Budget
The sales budget is an estimated sale for the budgeted period. The sales budget is constructed by multiplying budgeted unit sales by the selling price.…
Major benefits of Just in Time (JIT) System
Major benefits of Just in Time (JIT) System Just in time system is basically a kind of inventory system in which materials are brought immediately…
Theory of Constraints (TOC)
Theory of Constraints (TOC) The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way…
How does Zero Based Budgeting differ from Traditional Budgeting?
Zero Based Budgeting is a method of budgeting in which all expenses must be justified for each new period. It aims to put the responsibility…
Concept of Zero Based Budgeting
The concept of Zero Based Budgeting Zero Based Budgeting is a method of budgeting in which all expenses must be justified for each new period.…
Differentiate between Sales Forecast and Sales Budget
Sales Budget expresses your intentions/desires. It is the number you actually hope to get from sales. This is where you ‘want’ to go – your…
Components of Master Budget
A master budget is a set of interconnected budgets of sales, production costs, purchases, incomes, etc. and it also includes pro forma financial statements. A…
Difference between Cash Budget and Cash Flow Statement
A cash budget is one of the most important budgets prepared by a business concern as every transaction directly or indirectly deals with cash. It…
Why is the Sales Forecast the starting point in Budgeting?
Sales forecasting serves as the starting point for all activities of the firm and gives direction to all activities. It helps the firm to decide…
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