BUSS1030 Lecture 12: BUSS 1030 lecture 12
27 Jul 2018
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*for flexible budgeting you don"t need to actual flex your budget just know what it is* Corporate objectives, long-term plans and budgets their relationship: corporate objectives: Exercising control: this is passive control not like a boss ordering people around. Its control to help achieve a certain goal: control is defined as compelling events to conform to plan, variances between actual outcomes and budgets should be highlighted by accounting information. Large variances need to be explained and adjusted for in next period budget: this can be followed by steps to get the business back on track towards achieving the budget. Projected financial statements must be prepared on the basis of: an optimistic view of likely future events, a pessimistic view of likely future events, a most likely" view of future events. (most accurate) Do we need to get rid of old capital and replace with new efficient assets: working capital accounts receivable, accounts payable.
