Course: Budgeting: How to Prepare a Cash and Functional Budget

As we have already established, a payment is an amount of money that we owe to vendors or suppliers, for goods or services we have received. A payable is a …

Once you are comfortable adding receipts to a cash budget, there are few further aspects to consider. How can we persuade our customers to pay early? What happens if our …

As we’ve just seen, you can sell a product on account and send out an invoice and you’ll get the money from that eventually. But in the meantime, staff, suppliers …

So far we have looked at a number of subsidiary budgets: sales production materials labour overheads. These form the basis of the master budget. In reality a business may have …

In the video, the Kaplan tutor goes through an example so you can see how limiting factor analysis works in context and how it informs a production plan. In the …

The sales budget is usually the first budget that a business will produce – all of the other budgets, such as production, materials and labour, will all be based on …

To identify the limiting factor, we first establish how much we have of each resource required. While it may look like there are multiple constraints to reaching optimum sales demand, …