November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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6.17. Conclusion
Forecasting is an essential element of planning and budgeting. Forecasts of future sales and their related expenses provide managers with information needed to plan other activities of the business.
This chapter has emphasized budgets. The process involves developing a sales forecast and, based on its magnitude, generating those budgets needed by a specific firm. Once developed, the budgeting system provides nonfinancial management with a means of controlling their activities and of monitoring actual performance and comparing it to budget goals.
Budgeting can be done easily with the aid of electronic spreadsheet software. Many specialized application programs are available.
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