After you have mastered the material in this chapter, you will be able to: Describe the budgeting process and the benefits it provides, prepare a sales budget and related schedule of cash receipts, prepare an inventory purchases budget and related schedule of cash payments. | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14: Planning for Profit and Cost Control 7- Learning Objectives Describe the budgeting process and the benefits it provides. Explain the relationship between budgeting and human behavior. Prepare a sales budget and related schedule of cash receipts. Prepare an inventory purchases budget and related schedule of cash payments. Prepare a selling and administrative expense budget and related schedule of cash payments. Prepare a cash budget. Prepare a pro forma income statement, balance sheet, and statement of cash flows. In this chapter, the learning objectives are: Describe the budgeting process and the benefits it provides. Explain the relationship between budgeting and human behavior. Prepare a sales budget and related schedule of cash receipts. Prepare an inventory purchases budget and related schedule of cash payments. Prepare a selling and administrative expense budget and . | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14: Planning for Profit and Cost Control 7- Learning Objectives Describe the budgeting process and the benefits it provides. Explain the relationship between budgeting and human behavior. Prepare a sales budget and related schedule of cash receipts. Prepare an inventory purchases budget and related schedule of cash payments. Prepare a selling and administrative expense budget and related schedule of cash payments. Prepare a cash budget. Prepare a pro forma income statement, balance sheet, and statement of cash flows. In this chapter, the learning objectives are: Describe the budgeting process and the benefits it provides. Explain the relationship between budgeting and human behavior. Prepare a sales budget and related schedule of cash receipts. Prepare an inventory purchases budget and related schedule of cash payments. Prepare a selling and administrative expense budget and related schedule of cash payments. Prepare a cash budget. Prepare a pro forma income statement, balance sheet, and statement of cash flows. 7- Three Levels of Planning Strategic planning involves making long-term decisions such as defining the scope of the business, determining which products to develop or discontinue, and identifying the most profitable markets. Capital budgeting focuses on intermediate range planning and involves decisions as whether to buy or lease equipment, whether to stimulate sales, or whether to increase company assets. Operations budgeting focuses on short-term objectives . The master budget addresses specific sales targets, production goals, and financing plans. 7- Businesses describe the three levels of planning as strategic planning, capital budgeting, and operations budgeting. 1. Strategic planning involves making long-term decisions such as defining the scope of the business, determining which products to develop or discontinue, and identifying the most
