Management Accounting

Topic:

Name:

Course:

Instructor’s Name:

Date:

Master budgets.

This is the projection of how management in the organization expects to business over the budget period; it’s usually a fiscal year.it summarizes the projected activity, this is through cash budget, income statement budget and the budgeted balance sheet. Master budgets will always include interrelated budgets from various departments in the organization. Its main purpose is to keep managers in larger organizations to be on the same page.

Operational budgets.

This type of budget covers the revenues and expenses mainly of the day-day business of the company. Revenues sales of products and services are represented by revenues while costs of goods sold, administrative costs; production costs are represented by expenses. Operating budgets are broken down into smaller reporting periods such as monthly. This will enable managers to compare ongoing operations results to the budget of the year hence enabling planning and adjustment in revenue.

Cash flow budgets.

These budgets are used to examine the inflows and outflows of cash in a business daily activities.it normally predicts ability for a company to take more money than it pays out.in order to pinpoint shortfalls between expenses and sales managers have to monitor cash flows budget. Production levels and production cycles are suggested by cash flow budgets; this is to enable company’s resources to be available for activity and not sitting idle in the company’s warehouses.

Financial budgets.

The outlines of how a business receives and spends money on a corporate scale are spelled out in the financial budget. Revenues and income from core business are included. The financial health of an organization depends heavily on management of assets such as property, buildings, investments, and equipment.financial budgets are used by executive managers to leverage financing and valuation of the company in times of...