Financial

Planning &
Budgeting
STRATEGIC COST
MANAGEMENT
Budgeting
Budget – a Financial Plan of the resources needed to carry out tasks and meet financials goals. It
is also a quantitative expression of the goals the organization wishes to achieve and the cost of
attaining these goals
The Master
Budget
Comprehensive Budget for a
specific period. It consists of
many interrelated operating
and financial budgets.
Steps in Developing a Master Budget
Establish basic goals and long-range plans for the Company. These will serve as guidelines in
the preparation of budget estimates
Prepare a sales forecast for the budget period

Estimates the cost of sales and operating expenses

Determine the effect of budgeted operating results on assets, liabilities, and equity accounts.
The Cash budget is the largest part of this step, since changes in many asset and liability accounts
will depend upon the cash flow forecast
Summarize budgeted data in a form of projected Financial Statements