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BUDGETING - Coggle Diagram

- - - - management activities
        
        a certain time period
  - - - strategic plans
        
        how to create product value
        
        external factors
        
        social
        
        environmental
        
        technological
      - goals
  - - - of primary decision makers
  - - - use of resources
      - activities carried out
- - - - setting goals
        
        communicate
        
        goals/ desired outcomes
        
        resources
        
        focused activities
        
        motivate
    - - allocating
        
        resources
        
        responsibilities
    - - measuring performance
        
        compare
        
        actual results with budgets
        
        variances
        
        provide a basis
        
        evaluate
        
        organization's performance
        
        linked
        
        forrmal incentives
        
        cash rewards
        
        promotions
        
        awards
        
        profit sharing
- - - - estimated
        
        sales units
        
        revenues
      - consider
        
        external factors
        
        past sales levels, new products planned, intended pricing policy and planned advertising and promotion...
        
        internal factors
        
        past sales levels, new products planned, intended pricing policy and planned advertising and promotion...
    - - Manufacturing firms
        
        production budgets
        
        direct materials
        
        direct labor
        
        overheads
        
        marketing
        
        general and administrative expenses
      - Retailers and Wholesalers
        
        purchasing budgets
        
        determine
        
        purchased goods'
        
        quantity
        
        costs
        
        marketing
        
        general and administrative expenses
  - - - expected cash receipts
      - planned cash payments
    - - budget period
        
        expected revenues
        
        planned expenses
    - - at the end of budget period
        
        assets
        
        liabilities
- - - - managers at all levels
    - - senior managers
    - - low managers