AFM102March142011

AFM102March142011 - Click to edit Master subtitle style...

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Unformatted text preview: Click to edit Master subtitle style 5/11/11 Introduction to Management Accounting March 14, 2011 Introduction to Budgets 11 5/11/11 Key Concepts in Todays Class The nature of planning and control The master budget 22 5/11/11 The Importance of Planning The beginning is the most impor tant par t of the work. Plato (BC 427-BC 347) Greek philosopher. A man who does not think and plan long ahead will find tr ouble r ight at his door. 33 5/11/11 44 5/11/11 The Budgeting Process A budget is a quantitative expression of the money inflows and outflows that reveal whether a financial plan will meet organizational objectives Budgeting is the process of preparing budgets Budgets provide a way to communicate the organizations 55 5/11/11 The Budgeting Process Budgets help to anticipate potential problems Budgeting reflects the cash cycle and provides information anticipate borrowing needed to finance the inventory buildup early in the cash cycle If budget planning indicates that the organizations sales potential exceeds its manufacturing potential, then the organization can develop a plan to put more capacity in place or to reduce planned sales 66 5/11/11 A Student Budget 77 5/11/11 88 5/11/11...
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AFM102March142011 - Click to edit Master subtitle style...

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