Capital Budgeting
- Submitted by: morpheus
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- Category: Other
- Date Submitted: 04/12/2011 02:34 PM
- Pages: 12
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Contents
1.0 INTRODUCTION 3
2.0 STAGES OF BUDGETING 4
3.0 CASH BUDGET 6
4.0 FACTORS INFLUENCING INVESTMENT OF SURPLUS BUDGET: 7
5.0 STEPS TO STTING UP CREDIT CONTROL SYSTEM: 9
6.0 DECISION MAKING IN CREDIT CONTROL SYSTEM 11
7.0 OVERDRAFT 12
8.0 CONCLUSION 14
9.0 REFRENCES 15
10.0 BIBLIOGRAPHIES 16
1.0 INTRODUCTION
In Every organization be it in manufacturing or service sector need a guideline or plan so that it will be used to achieve such organization’s goal. A well organized plan that allocates resources, (income and expenditure) in an organization within a specified period of time and helps in co-coordinating activities e.g. cash budget.
According to the Chartered Institute of Management Accountants (CIMA) a budget is a plan expressed in money, prepared and approved prior to budget period which may show income, expenditure and capital. They also define budgetary as the establishment of budgets relating the responsibilities of executives to the requirements of policy and the continuous comparison of actual with budgeted results either to secure by individual action the objective of that policy or to provide basis for revision.
Budgetary control may be seen as the method of comparing actual company performance against the budget, the difference or variances from the actual performance and the budget will then be the main focus of the organization. The budgetary control has to do with decision making because any variance in the budget must be acted upon
2.0 STAGES OF BUDGETING
* COMMUNICATION OF OBJECTIES: in any business or organization there must be some objectives contained in the organization’s strategic plan, a change in policy should be brought to the notice of those of those accountable to the budget preparation by the top managers because such awareness by the budget committee will help in adjusting the budget. Changes in organizations policies may include expansion or withdrawal of certain activities etcetera.
*...
1.0 INTRODUCTION 3
2.0 STAGES OF BUDGETING 4
3.0 CASH BUDGET 6
4.0 FACTORS INFLUENCING INVESTMENT OF SURPLUS BUDGET: 7
5.0 STEPS TO STTING UP CREDIT CONTROL SYSTEM: 9
6.0 DECISION MAKING IN CREDIT CONTROL SYSTEM 11
7.0 OVERDRAFT 12
8.0 CONCLUSION 14
9.0 REFRENCES 15
10.0 BIBLIOGRAPHIES 16
1.0 INTRODUCTION
In Every organization be it in manufacturing or service sector need a guideline or plan so that it will be used to achieve such organization’s goal. A well organized plan that allocates resources, (income and expenditure) in an organization within a specified period of time and helps in co-coordinating activities e.g. cash budget.
According to the Chartered Institute of Management Accountants (CIMA) a budget is a plan expressed in money, prepared and approved prior to budget period which may show income, expenditure and capital. They also define budgetary as the establishment of budgets relating the responsibilities of executives to the requirements of policy and the continuous comparison of actual with budgeted results either to secure by individual action the objective of that policy or to provide basis for revision.
Budgetary control may be seen as the method of comparing actual company performance against the budget, the difference or variances from the actual performance and the budget will then be the main focus of the organization. The budgetary control has to do with decision making because any variance in the budget must be acted upon
2.0 STAGES OF BUDGETING
* COMMUNICATION OF OBJECTIES: in any business or organization there must be some objectives contained in the organization’s strategic plan, a change in policy should be brought to the notice of those of those accountable to the budget preparation by the top managers because such awareness by the budget committee will help in adjusting the budget. Changes in organizations policies may include expansion or withdrawal of certain activities etcetera.
*...