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Topic 6: Financial Planning and Control - Coggle Diagram
Topic 6: Financial Planning and Control
Definition of budget:
is the overall plan of a business expressed in financial terms
Purposes for budgeting:
Plan the business
Decide for the business
Exercise control over the business
The budgeting process
Prepare budgets
Approve budgets
Allocate responsibility
Implement budgets
Operationalise strategies
Measure performance
Audit resources
Act to control the event
Define objectives
Methods of Budgeting
Continuation
budgets compiled on the basis of no change in policies or priorities; business as usual.
Zero based budget
starts budgeting with the priorities of an organization and allocates resources to those priorities according to their order of importance
Comparing actual and budgeted
Definitions:
Total
Budget
Actual
Variance