Ch 3: Budgeting in Business
About This Chapter
Budgeting in Business - Chapter Summary
In this chapter, you will study details about corporate budgeting, master budgets and budget controls. Detailed definitions and examples ensure that the material is clearly and effectively explained and that you retain the most important facts addressed in these lessons.
You will also learn about variance reports and how to calculate variances in budgets. After a thorough review of this chapter, you should be able to do the following:
- List the major components of a master budget
- Identify and explain different budget controls
- Prepare a corporate budget
- Analyze budget variances
- Relate steps for preparing budgeted reports, such as those for cash and profit
With each lesson, you get expert instruction, 24/7 accessibility and self-assessment quizzes that help you determine how much you have learned and if you need any further studies in any area. Printable lesson transcripts allow you to create reference tools if desired. Track your progress using your Dashboard, and ask instructors any questions relating to this material using a simple online contact form.
1. Master Budget in Accounting: Definition, Components & Example
In this lesson, we'll outline the major components of a master budget and look at an example that shows how a company's individual budgets relate to each other and can be used to form a strategic plan for a company.
2. Budget Controls: Top-Down, Bottom-Up, Zero-Based & Flexible Budgeting
In this lesson, we will explain the purpose of budget controls and explore several key related concepts including top-down budgeting, bottom-up budgeting, zero-based budgeting and flexible budgeting.
3. How to Prepare a Budget for a Corporation
Budgets are some of the most important documents that a company will produce. In this lesson, we'll learn how to prepare a budget for a corporation, starting by planning the budget and ending with distribution.
4. Variances in Budgets: Definition, Calculations & Analysis
What are variances in budgets, and why do we calculate them? In this lesson, we discuss what they are, why we care about them, and how to analyze variances in our own reports to obtain information we can use to improve our results.
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Other Chapters
Other chapters within the VCE Accounting: Exam Prep & Study Guide course
- Establishing a Small Business
- Funding for Small Businesses
- Overview of Service & Trading Businesses
- Business Analysis Overview
- Price Setting Strategies for Business
- Financial Statements Overview
- Overview of Accounting Basics
- Overview of the Accounting Cycle
- Internal Control Use in Accounting
- Technology in Accounting
- Double-Entry Accounting Overview
- Journals in Accounting
- Accrual-Based Accounting System
- VCE Accounting Flashcards
