The four phases of a budget cycle for small businesses are preparation, approval, execution and evaluation. Most small businesses don’t use the term “budget cycle” but they use the process and go through each of its four phases — preparation, approval, execution and evaluation.
Q. Which of these outcomes become more likely for someone with strong personal?
The following outcomes are more likely to become for someone with strong personal finance skills: (A person can be more prepared to meet basic need; a person can avoid financial decision-making; a person can spend money thoughtfully to accumulate assets; a person can spend wisely to avoid financial problems).
Table of Contents
- Q. Which of these outcomes become more likely for someone with strong personal?
- Q. What categories should I have in my budget?
- Q. What is a Master Budget?
- Q. Who approves the master budget?
- Q. What are the two classifications of master budget?
- Q. What is difference between functional budget and master budget?
- Q. What are the two main categories of functional budgets?
Q. What categories should I have in my budget?
The Essential Budget Categories
- Housing (25-35 percent)
- Transportation (10-15 percent)
- Food (10-15 percent)
- Utilities (5-10 percent)
- Insurance (10-25 percent)
- Medical & Healthcare (5-10 percent)
- Saving, Investing, & Debt Payments (10-20 percent)
- Personal Spending (5-10 percent)
Q. What is a Master Budget?
A master budget consists of a projected income statement (planned operating budget) and a projected balance sheet (financial budget) showing the organization’s objectives and proposed ways of attaining them.
Q. Who approves the master budget?
The budget committee usually develops the master budget for each year, guided by the budget director, who is usually the controller of the company. They usually plan the operating budgets first since information from the operating budgets is needed for the financial budgets.
Q. What are the two classifications of master budget?
The various budgets which are ultimately rolled up within a master budget are Direct labor budget, Direct material budget, Finished goods budget, Manufacturing expenses budget, production budget, sales budget, cash budget, capital asset acquiring budget and selling, and administrative budget.
Q. What is difference between functional budget and master budget?
Functional budgets are the budgets prepared for various activities of a firm. 6. Master budget takes two forms – a budgeted profit and loss account and budgeted balance sheet. In the budgeted profit and loss account all cost and revenues of all functional budgets are shown in summary form.
Q. What are the two main categories of functional budgets?
Types of Functional budgets
- (1). Sales budgets. it is the first budget which is an estimate of expected sales during the budget period.
- (2). Production Cost Budget.
- (3). Purchase Budget.
- (4). Labor Cost Budget.
- (5). Promotion Overhead Budget.
- (6). Capital Expenditure Budget.
- (7). Cash Budget.
- (8). Master Budget.
