Fixed Budget
Jennifer edwards A fixed budget is the financial plan designed and implemented by the management that is not changed or altered throughout the accounting and budgeting period. It remains same and uniform…
Zero Based Budgeting
Zero based budgeting is a budgeting approach where each and every line of budget is started and planned from the scratch. Unlike common budgeting methods in this method every expenditure…
Capital Budgeting: Internal Rate of Return
As the name indicates the internal rate of return method indicates the rate of return associated with the project. This is the rate of return that an investor can expect…
Capital Budgeting: The Payback Technique
Budgeting is an important aspect of financial planning of a business. With the help of capital budgeting techniques a business decides the allocation, funding and the management of capital for…
Causes of Bankruptcy
A business can lead to bankruptcy due a number of factors that may be under the control of management or beyond management control. Most of the time a business…
Budgeting Methods: How to choose one for your business
A budget can be defined as a written estimate of the future financial performance of a business, project or a particular financial unit. With the help of budgeting one can…
Profit Planning or Budgeting
Sana Ahmed Learning Objectives: Define and explain the terms "profit planning" and "budgeting". What is the difference between planning and control? What are the advantages and disadvantages of budgeting? Contents: Definition and…
Inventory Purchases Budget for a Merchandising Firm
Inventory Purchases Budget for a Merchandising Firm: Learning Objectives: Define and explain an inventory budget. Prepare an inventory budget or merchandising purchase budget. Manufacturing firms prepare production budget but merchandising…
Zero Based Budgeting (ZBB):
Zero Based Budgeting (ZBB): Learning Objective of the article: Define and explain the term "zero based budgeting" and "incremental budgeting" in managerial accounting. Explain the importance and use of zero…
Selling and Administrative Expense Budget
Shamsa Rafique Selling and Administrative Expense Budget: Learning Objectives: Define and explain selling and administrative budget. Prepare selling and administrative budget. Definition and Explanation: Selling and administrative expense budget lists the budgeted…
Manufacturing Overhead Budget
Manufacturing Overhead Budget: Learning Objective of the article: Define and explain manufacturing overhead budget. Prepare a manufacturing overhead budget. The manufacturing overhead budget provides a schedule for all costs of…
Participative Budgeting or Self Imposed Budgeting
Rubab Ali Participative Budgeting or Self Imposed Budgeting: Learning Objective of the article: Define and explain the term "self imposed or participative budgeting" in managerial accounting. Explain the importance and use of…
Material Budgeting | Direct Materials Budget
Material Budgeting | Direct Materials Budget: Learning Objective of the article: Define and explain direct materials budget or Materials Budgeting. Prepare a direct material budget including a schedule of expected…
Direct Labor Budget
Direct Labor Budget: Learning Objectives: Define and explain direct labor budget. Prepare direct labor budget. Definition and explanation of direct labor budget Example Definition and Explanation: The direct labor budget…
Ending Finished Goods Inventory Budget
Ending Finished Goods Inventory Budget: Learning Objective of the article: Define and explain ending finished goods inventory budget. Prepare a manufacturing overhead budget. After preparing sales budget, production budget, direct…
International Aspects of Budgeting
International Aspects of Budgeting: A multinational company faces special problems when preparing a budget. The problems arise because of fluctuations in foreign currency exchange rates, the high inflation rates found…
Human Factors in Budgeting
Human Factors in Budgeting: The success of a budget program also depends on: The degree to which top management accepts the budget program as a vital part of the company's…