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I enjoy reading through the process of understanding and create budgets for sales and production. Martin explained that the budget may help predict potential problems in the future, but I don't fully understand how the budget will allow a company to see the future and prepare for any problems that they may encounter. I understand why it's so important to forward plan for possible problems as shortage or surplus stock, but what else would be a solid plan for? Other issues will include capital costs if the company has repaired about to happen?I believe I also have a better understanding of how the sales goals is designed by understanding the needs of customers, the actions of competitors, and what is happening in the world at that time could be a contributing factor?One thing I have picked up on, with purple chocolates and their cash budget, to do this on a system while it is the reverse of the crease area accounting? It is only when cash is received that counts, as opposed to when the transactions occur.It took me a little time to find out where all this data are drawn from the budget in cash for the Purple Chocolates. My understanding is that Purple Chocolates money is flowing out to be beyond it's cash flow, which means that in 3 months the company was negative in net cash flow, after 6 months of cumulative activity to $ 325.000 in net cash flow.People are watching the cash budget, budget, balance sheet, etc.? Is it the only party internally? This is a short-term plan for the future, so shareholders will receive information or may even said the budget?To my understanding, a balance sheet of the budget is where the company predicts the assets, liabilities and equity is in the short term. Which is where they can further increase the equity, property or just the same as budgets for income and cash? With my mind somewhat cluttered with all of the information it obtained in relation to all involved in Chapter 7, I believe that I am in the right here. I think that the balance sheet has just drawn up will be announced in the annual report of a company, but this program has shown me that it can be used as a number of a draft for a company to plan what they plan to do with the assets, liabilities and equity in the short term.The Center for responsible, effective measurement balanced scorecard and it seems to me like the quality control area of the budget. Designed to keep an eye on the business sector and ensure that the staff of the unit are under the proposed budget, and does not show any interruptive behavior or dishonest. To my understanding, balanced scorecards is an area in which a company can communicate with customers about their customer service, as well as other areas of the company can be improved, do not know is this true? It's almost like a feedback for the company?Throughout this chapter, I have learned that my previous idea ' budget ' quite narrow-minded. The budget does not only mean financial institutions of a company in the short term, but it is also related to the Organization of a company to work smarter, by coordinating the staff work effectively, to create better communication between the units responsibility, and encourages staff to implement the short term goals of the company. The budget is a lot more than just income allocated to the cost of a company. The budget can be a success for any company. I believe that the budget was held, and be smart about what is going on in a company, a successful tool for planning for the future.
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