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Costs and Budgetary Control - Coggle Diagram
Costs and Budgetary Control
Short- and Long-Term Plans
Sales Plan: projection of future revenues
Purchasing Plan: requirements for raw materials and supplies.
Marketing Plan: strategies for positioning and sales.
Reinvestment and Growth: use of profits for expansion.
Company Budgets
Forecast Predetermination: estimation of future scenarios.
Expenditure Estimates: calculation of expected costs.
Recovery Projections: anticipated revenues or returns.
Risk Assessment: analysis of uncertainty
Corporate Foresight
Economic Aspect: macroeconomic impact
Growth Aspects: internal and market expansion
Image and Service: customer perception and quality.
Cooperation for Development: partnerships and social responsibility.
Financial and Projected Statements
Balance Sheet: resources and obligations.
Financial Ratios: analysis of liquidity, indebtedness, and profitability.
Income Statement: revenues, costs, and profits.
Analysis of Future Periods: forward-looking projections
Function and Accounting
The Accounting Cycle: recording, classification, and summarizing.
Classification of Companies: by activity or purpose.
Profit: earnings generated by operations.
Costing Reports: reports for decision-making
Nature of Costing
Expense vs. Investment: difference based on future benefit.
Primary Cost Classification: materials, labor, and overhead
:Cost, Price, and Profit: relationship for pricing decisions.
Total and Unit Costs: calculation for production assessment.
Costing Method
Cost Accounting as Control: monitoring of processes.
Absorption Costing: includes all costs.
Direct or Variable Costing: only variable costs
Chart of Accounts: accounting structure.
Accounting Cycle
Raw Materials Accounting: recording of inputs.
Contents of the Balance Sheet: assets, liabilities, and equity.
Income Statement: gross and net profit.
Statement of Retained Earnings: distribution of profits.