0
Why is it advisable to start with sales the production and capital expenditure forecast in the budgeting process?
Starting with sales forecasts in the budgeting process is advisable because it provides a foundation for estimating revenue, which is crucial for determining the financial feasibility of the budget. Additionally, sales forecasts can drive production forecasts, helping to align production capacity with expected demand. Capital expenditure forecasts should follow sales and production forecasts to ensure that investments are made strategically to support the anticipated sales and production levels. This sequential approach ensures that the budget is realistic and well-aligned with the overall business strategy.
What else can I help you with?
What is a forecast outturn?
Forecast outturn is an estimate of expenditure made before the Appropriation Accounts have been prepared.
What is the role of a sales forecast in budgeting?
I believe its your estimated income at a certain date so that you can estimate what you can afford to purchase/spend. Hope this helps
The key to current asset planning is the ability of management to forecast sales accurately and then match production schedules with the sales forecast?
true
What is the Importance of national budgeting?
the purpose of having a national budget is to provide a forecast of revenues and expenditures for the country. That is, construct a model of how the country might perform financially if certain strategies, events and plans are carried out. It enables the actual financial operation of the country to be measured againnst the forecast. It is also important to establish the cost constraint for a project, program or operation. :)
'What is the difference between sales forecast and sales quota?
what is sales forecast
What are the functions of an accounting officer?
Accounting officer record all income and expenditure of a company or organisation, forecast the future stand of it, advice on any related finances of a company,also there is must be a budgeting for every department.
What is a forecast outturn?
Forecast outturn is an estimate of expenditure made before the Appropriation Accounts have been prepared.
What internal factor would minimize the risk in a budget forecast?
cut expenditure. will ensure, bubtget stays under control
What is the role of a sales forecast in budgeting?
I believe its your estimated income at a certain date so that you can estimate what you can afford to purchase/spend. Hope this helps
The key to current asset planning is the ability of management to forecast sales accurately and then match production schedules with the sales forecast?
true
Is usual starting point in budgeting is to make a forecast on net income?
No, past performance is the starting point used to formulate future budget goals.
What is the difference between sales and production?
A forecast of Sales is calculating the amount of items you expect to sell over a certain period, whereas a Production forecast is calculating the amount of items you expect to produce over a certain period.
What is the difference between sales and production forecasts?
A forecast of Sales is calculating the amount of items you expect to sell over a certain period, whereas a Production forecast is calculating the amount of items you expect to produce over a certain period.
What is a plan for acquiring the resources needed to complete the manufacturing activities that will satisfy the organization's sales forecast a production budget?
production budget
What are the functions of budget?
In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast.
What are function of budget?
In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast.
What is the difference between forecast and prediction?
Difference between Budget and Forecast Once the financial objectives have been set, it is possible to prepare and agree a budget. A budget should relate the overall plan in figures. It is different from a forecast in the sense that the plan, and therefore the budget, sets minimum requirements, whereas a forecast is usually an expectation of what is likely to happen. Example: You might choose to budget for sales of £180,000 and use this figure in calculating your likely expenditure, profit and so on. Based on your market research, however, you predict sales of £200,000, and set a target of £220,000, in order to stretch your sales force. If all your costs are covered by the budgeted figure, then you will make a greater profit if you achieve the forecast and a still greater one if you achieve the target. (Whilst this is an important distinction, in practice for most businesses the forecast and budget will be the same.)
