Week_2_-_DQ_2 - An operating budget has to do with...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 2, DQ 2 Define the difference between forecasting and budgeting. What is the difference between an operating budget and a cash budget? To forecast, in Accounting terms, is to make a statement about an expected outcome…say  Cash Forecasting. A budget is a financial forecast planned by management of an organization. A budget is made  by management in order to control the business. A forecast is a statement of an expectation that is likely to occur. A budget actually sets  minimum requirements. For example: a spending budget might be set, based on a sales forecast.
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: An operating budget has to do with operating costs, primarily costs associated with producing services or merchandise of an organization. A cash budget is for a certain time period of cash inflows and outflows. The goal of the cash budget is for cash planning and control. A cash budget is used by management as an aid to meeting the organization’s cash needs. A cash budget is normally divided into four sections: Receipts, Disbursement, Cash Surplus/Deficit, and Financing sections....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern