Lección 6

Budget is a short-term bussiness plan expressed in ?

• Financial or physical terms

• A long term business plan

• Monetary plans

• Plan to achieve an objective

Select 3 Uses of Budgets

• Promote forward thinking

• Design a nice Gantt chart

• Help coordinate the varios aspects of Business

• Design a long plan of business

• Motivate Performance

Select 3 steps for Budget design

• Plan of action

• Establish who will take responsability

• Identify key factor

• Prepare the cost control plan

• Review and Coordinate

Zero Based Budgeting philosofy is ...

• All spending is ok

• To spend something need the manager approval

• Monitor perfomance relative to budget

• All spending must be justified

Incremental budgets are based on?

• A long term analysis

• Columnar Budgets

• Previous Periods

• Identify key factors