acc - 220 - week 7 dq 1

Acc 220 week 7 - entity’s overall operations and the impact on operations of external factors such as economic trends The advantages of budgeting

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A budget is a proper written statement of management’s plans for a specific future period, expressed in financial terms. It usually symbolizes the technique of communicating agreed-upon objectives throughout the business. Company’s use budgets in planning and controlling their operations. Budgeting must be used for management to uphold enough cash to pay creditors, to have adequate raw materials to meet production necessities, and to have sufficient finished goods to meet expected sales. An important advantage of budgeting includes the management awareness of the
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Unformatted text preview: entity’s overall operations and the impact on operations of external factors, such as economic trends. The advantages of budgeting is understood when budgets are cautiously arranged and appropriately administered by management. One benefit of nonstop budgeting is that it maintains management planning a full year ahead. A thriving business makes equally long-term and short-term plans. These plans set onward the objectives of the business and the projected way of accomplishing them. A budget is an aid to management; it is not a substitute for management....
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This note was uploaded on 12/12/2011 for the course ACC 220 220 taught by Professor Aliciahubbard during the Winter '10 term at University of Phoenix.

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