![]() ![]() Government expenditure is directed towards a variety of current and capital commitments. Government revenue comes primarily from receipts from various taxes such as income tax and value added tax (see DIRECT TAX, INDIRECT TAX), NATIONAL INSURANCE CONTRIBUTIONS, and miscellaneous sales, including the proceeds from selling off State industries. a statement of the government's financial position which is used for the government's economic and social welfare programmes and as part of FISCAL POLICY in managing the level and distribution of spending in the economy.13 overleaf shows a simple company budget. 12 shows the steps involved in developing a budget while Fig. Finally the master budget aggregates all the former budgets to produce a budgeted PROFIT-AND-LOSS ACCOUNT and a budgeted BALANCE SHEET, showing what profit will be earned and what the year-end position will be, provided that actual operations go according to plan. (so that any anticipated cash surpluses or deficits show up in good time to deal with them). The cash budget shows the overall cash position, with cash inflows resulting from planned sales and cash outflows resulting from planned expenditure on raw materials, wages, capital expenditure, etc. The capital expenditure budget is concerned with planned expenditure on FIXED ASSETS, itemizing what new or replacement assets are to be acquired during the forthcoming period and making the necessary finance available. The administration costs budget shows the planned cost of personnel, accounts and similar administrative departments. The production budget specifies the quantities of various goods to be produced and the planned DIRECT MATERIALS, DIRECT LABOUR and factory OVERHEADS associated with these production plans, with a purchases budget showing planned purchases of raw materials. Once the sales budget is complete then the consequences of planned sales can be spelled out in the production budget, after making allowance for any planned changes in finished goods stock. and associated warehousing and transport costs. The linked selling costs budget shows planned salesforce and advertising costs while the distribution costs budget shows planned distribution activity measured in packages handled, tonnage, etc. The sales budget is generally compiled with the aid of sales forecasts and shows quantities and values of planned sales broken down by product group, area and type of customer. a firm's predetermined plan (expressed in quantitative or financial terms) for a given future period. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |