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Unformatted text preview: ACCOUNTING 2000 11/17/11 Budget- formal written statement of managements plans for a specified future time period, expressed in financial terms-primary way to communicate all parts to company-efficient-control device Benefits :-requires all levels of management to plan ahead and formalize goals-provides definite objectives-creates an early warning system for potential problems-facilitates coordination of activities-results in greater management awareness-motivates personnel CLICKER : which is not a benefit of budgeting?-enables disciplinary action Effective Budgeting :-depends on sound organizational structure-based on research and analysis-accepted by all levels of management Budget period :-any period of time-year is the most common-long enough to provide an attainable goal-short enough for reliable estimates-continuous 12 month budget Factors considered in sales forecasting :-general economic conditions-industry trends-market research studies-anticipated advertising-previous market...
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This note was uploaded on 01/19/2012 for the course ACCT 2000 taught by Professor Holmes during the Fall '08 term at LSU.
- Fall '08