BUSN1001 Lecture Notes - Lecture 9: Strategic Planning, Accounts Receivable, Leaseback
Document Summary
De nes the general direction of the business over next ve or so years. It is usually carried out by senior management. E. g. , improving customer service, corporate governance, management techniques, and human resource management: a budget is the quantitative expression of an entity"s plans, budgeting can assist in decision making by: Identifying periods of expected cash shortages and excess cash holdings. Assisting with short-term planning decisions, such as capacity utilisation. Providing pro t forecasts and other nancial data to the capital markets. Forecasting data such as sales or fees, which commonly set the level of activity for the budget period. Helping determine required inventory levels and purchasing requirements for raw materials. Types of budgets: the nature of the entity will determine the type of budgets prepared. A variance is the difference between actual and budget results, and it can be either favourable or unfavourable.
