Budgeting

I will begin by giving a brief introduction to what budgeting is;
"A budget is a formal written statement of management's plans for a specified period of time, expressed in financial terms. It charts the course for future action. Budgeting embraces both accounting and management functions. It is a management function because it is a plan, which will be used to assist in managing the operation. Budgeting requires management to plan for decision making, establishing objectives, and setting priorities. Budgeting is also an accounting function because the plans are translated into financial terms. Probably no other instrument contributes more directly to effective management than a budget." http://www.nfsmi.org

Budgets will set out specific targets dealing with:
- Capital receipts and payments
- Sales, broken down into amounts and prices for each of the products or services the business provides
- Comprehensive stock requirements
- Comprehensive labour requirements
- Precise prod...