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Unformatted text preview: time.
Most common - one year. Long enough to provide an attainable goal and
Short enough for reliable estimates. Continuous twelve-month budget .
twelve- Drop the month just ended and add a future month.
Keeps management planning a full year ahead. Chapter
The Budgeting Process
Base budget goals on past
Develop budget within the framework
of a _______________________. Chapter
9-7 The Budgeting Process
Factors considered in Sales Forecasting:
2. Industry trends. 3. Market research studies. 4. Anticipated advertising and promotion. 5. Previous market share. 6. Price changes. 7. Chapter
9-8 General economic conditions. Technological developments. Budgeting
Budgeting and Human Behavior
Invite each level of management to participate. This “bottom-to-top” approach is called
“bottom-toParticipative Budgeting. Chapter
9-9 Participative Budgeting Flow of budget data from lower management to top levels. Chapter
Advantages: More __________________________because
lower level managers have more detailed
knowledge of their area. Tendency to perceive __________________
due to involvement of lower level management. Overall goal - produce a budget considered fair and
achievable by managers while still meeting corporate
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- Winter '14