How can budgeting assist a company in planning its workforce staffing levels?

Q: How does doing budget benefit companies?

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Explain direct labour budget.

A: Definition:   Operating budget: Operating budget which projects the budgeted amounts of operational…

Q: Why is the sales budget so important to the budgeting process?

A: Budget:   It is a statement of estimated revenues and expenditures set for a specific period of…

Q: of the budget in making management decisions?

A: Budget is defined as an estimate of revenue income and expenses for a set period of time. Budget is…

Q: A budget: A.is used to determine if a product should be continued or discontinued B.complies…

A: The budget is prepared by the business organizations so as to know the expected revenue and expenses…

Q: A company can expect to receive which of the following benefits when it starts its budgeting…

A: Budgeting is the process of estimation of revenue and expenditure into the foreseeable future. It is…

Q: What is the impact of responsibility reporting and budgeting on an organization?

A: A manager's performance is evaluated based on matters that are directly under the control of that…

Q: How is the financial plan and budget related to a company’s strategic plan?

A: Strategic plans are long term action plans which direct a firm towards its goals. Financial plan and…

Q: What is the role of the Office of Management and Budget OMB?

A: Office of the Management and the Budget (OMB):   This is the office which is part of the Executive…

Q: . what is a budget, and what are the different types of budgets? b. what operating budget exists…

A: a. Budgets are a condensed way of generating estimates or plans at various levels of sales in…

Q: How can a company’s board of directors use the budget to influence the future direction of the firm?

A: Definition: Budget: Budget is the process of identifying, collecting, and summarizing financial…

Q: [2] In the budgeting and planning process for a firm, which one of the following should be completed…

A: SOLUTION- STRATEGIC PLANNING IS A PROCESS IN WHICH ORGANIZATIONAL LEADERS DETERMINE THEIR VISION FOR…

Q: A company can expect to receive which of the following benefits when it starts its budgeting…

A: Benefits when it starts budgeting process: The benefit of budgeting process is to compare the actual…

Q: How is the operating budget of the master  budget used by management?

A: the master budget consists of all types of budget. operating budget is one of the budgets in the…

Q: how budget process fits into management’s planning process?

A: Planning as well as budgeting are critical components of managerial control. Efficient planning and…

Q: What are the primary differences in budgeting between manufacturing and nonmanufacturing firms?

A: The primary difference between  a manufacturing firm and a non-manufacturing firm is that the…

Q: A budget represents a target and aiming towards a target can be a powerful motivator. However,…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Identify the main purpose of a flexible budget for managers.

A: Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output.…

Q: Why should the opportunity costs of a farmer's labor, capital, and management be included on an…

A: Opportunity Cost is the cost foregone on the next best alternative, if a particular option is…

Q: What is the reason for preparing a budget in business?

A: A budget is a systematic financial process to decide the future cash flows in advance to achieve the…

Q: Is it really vital for a manufacturing company to prepare a budgeted income statement and balance…

A: A budgeted income statements statement that forecasts earnings, revenue, and expenses for the coming…

Q: Explain the concept of “master budget” and critically discuss its benefits to an organization.

A: A budget is an estimation of expenses as well as revenues which will be earned and incurred during…

Q: How does budgeting help management coordinate and plan business activities?

A:

Q: In a manufacturing company, what are the types of budgets included in the master budget? Describe…

A: Master Budget:   The master budget is a collection of budgets that is used by the company for…

Q: Discuss how are budgets used to help organizations plan for future and how are budgets used for…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Discuss the managerial accounting Explain Budgeting

A: Accounting means maintaining and analysing quantitative data to know the actual performance of the…

Q: when preparing the statement of budgeted balance sheet for a business, how do you find the expected…

A: Trade receivables, also known as Debtors, are accounts with amounts owed to a business by its…

Q: Why do successful companies tend to use the bottom-up approach to establish a master budget?

A: The bottom-up approach increases the efficiency and productivity of the employees as the budget is…

Q: Why should the production requirements set forth in the production budget be carefully coordinated…

A: The production requirements are efficiently coordinated with the sales budget to ensure smooth…

Q: Discuss any three advantages of budgeting? The subject is Managerial Accounting.

A: Budgeting:-It is a process of creating a plan for how to spend money. This spending plan is called…

Q: Describe the role of a budget director.

A:

Q: How could cost-volume-profit analysis be used in budgeting? In making a decision about advertising?

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…

Q: How do budgeted cost rates motivate the support-department manager to improve efficiency?

A:

Q: Discuss reasons why companies would establish a formal budgeting process for their businesses.

A: A business budget is a dynamic financial plan that is used to forecast a company's expected income…

Q: What is the relationship between the master budget and responsibility accounting?

A: Definition of budget: According to CIMA Budget means " Quantitative expression of a plan for a…

Q: Explain the role of budget in management cycle?

A: Budget is the term which is defined as the financial plan for particular period, generally for one…

Q: When looking at the main difference between the budget preparation process of a manufacturing…

A: Answer is option d) The budget process is more important to a mnufacturing company because of the…

Q: How important is a purchases budget and how does it help managers run a company?

A: budget is prepared by the company in order to estimate the income and expenditure that is to be done…

Cash budget

A cash budget is an estimate of an organization's cash flow for the future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future. If cash receipts are insufficient to cover future expenses, an organization may plan to obtain funds from other sources. After estimating the sales, purchase, and capital expenditure budgets for the year, management develops a cash budget. These budgets are created to ensure that an organization's cash flow is managed. It is important to note that only cash transactions are recorded when actual cash enters and exits an organization.