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Cost Accounting For Dummies by Kenneth Boyd

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Chapter 6

What’s the Plan, Stan? Budgeting for a Better Bottom Line

In This Chapter

arrow Seeing the master budget and its component parts

arrow Appreciating the importance of budgeting

arrow Planning production, sales, and cash

arrow Working costs into the budget process

arrow Assigning responsibility, using a budget as a guide

You need accurate information to make smart decisions about your business. A well-planned budget may be most important piece of information you use.

Budgeting is a proactive process. It’s the thinking person’s accounting. You anticipate future outcomes and can maximize them. You anticipate problems and may be able to minimize or eliminate them. That’s a lot better than operating in ignorance and reacting to events as they come up.

In this chapter, you look at budgets, consider how to anticipate costs, and work through some essential budget documents.

Brushing Up on Budgeting Basics

As you know, a budget is a financial plan that includes both financial and non-financial information. Its ...

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