Sales budgets To forecast sales revenue To forecast labour expenses Labour budgets Overhead budgets Concerns other estimated operating expenses Concerns estimated profit or loss. This brings together Budgeted Financial several of the budgets, for sales, material, labour, Performance Statement overheads and inventory Concerns the estimated cash inflow, cash outflow and Cash budgets cash position of a business. Budgeted Statement of Concerns estimated values of assets, liabilities and Financial Position owner’s equity at the end of a budget period. Variance Difference between actual and budgeted results Calculates the differences between each line item on Horizontal analysis financial reports to identify performance. Each item in the financial statement is calculated as a Vertical analysis percentage of sales. Management investigate variances that are above the Management by exception tolerance limit.
Sales budgets To forecast sales revenue Labour budgets To forecast labour expenses Overhead budgets Concerns other estimated operating expenses Budgeted Financial Performance Statement Concerns estimated profit or loss. This brings together several of the budgets, for sales, material, labour, overheads and inventory Cash budgets Concerns the estimated cash inflow, cash outflow and cash position of a business. Budgeted Statement of Financial Position Concerns estimated values of assets, liabilities and owner’s equity at the end of a budget period. Variance Difference between actual and budgeted results Horizontal analysis Calculates the differences between each line item on financial reports to identify performance. Vertical analysis Each item in the financial statement is calculated as a percentage of sales. Management by exception Management investigate variances that are above the tolerance limit.
TM_Prepare_&_monitor_budgets_refined.docx