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CACC406 CH10 - CACC406 CH10 Budget A quantitative...

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CACC406 CH10 Budget: A quantitative expression of a plan of action A condensed business plan for the forthcoming year Advantages: Aids in coordinating and implementing plan Provides a benchmark against which to measure actual performance Helps manager focus on operating or financial problems early A tool that helps managers plan and control operations Aids in allocating resources and maintaining control Different Types of Budgets 1. Strategic Plan - A plan that sets the overall goals and objectives of the organization - Does not deal with specific time frame 2. Long-Range Planning - Producing forecasted economic targets and/or financial statements for five- or ten-year periods - Estimates of what management would like to see in the company’s future financial statement 3. Capital Budgets - Budgets that detail the planned expenditures for facilities, equipment, new products, and other long term investments 4. Master Budgets (pro forma financial statements) -
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