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Unformatted text preview: to the budget to determine reasons for variances. This will allow you to address problems and resolve problems if you are under performing. 2. Financial Budget – The part of the master budget that focuses on the effects that the operating budget and other plans (such as capital budgets and repayments of debt) will have on cash o Capital budget o Cash budget o Budgeted balance sheet A. Usefulness – This allows you to keep track of cash available right now at the right time. 5. A master budget is needed to plan and control companies assets, equities, revenues, and costs that are involved in carrying out plans. Master budgets, compels managers to think ahead, provide an opportunity to reevaluate existing activities, and evaluate new ones, which all should be considered advantages. Some disadvantages of creating a master budget include the time involved in creating your budget, and the impact of a master budget that was forecast completely wrong. 6....
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This note was uploaded on 06/13/2011 for the course ACCT561 SH2MB906 taught by Professor Nathanielmanning during the Spring '09 term at University of Phoenix.
- Spring '09