Planning and budgeting is the best method to anticipate the future, this ensures in some way the achievement of the objectives that the company has set.
Planning is the process by which the governing bodies of the company continually design the desirable future and select the ways to make it feasible, it works as a global system using the methodology of systems thinking and the joint interaction of its components strategically and tactically.
Budgeting as an analogous word for this study results from making the anticipated calculation of the cost, expenses and income or income of a business, budgets are made based on the accumulated knowledge that the organization has of the specific activity of the company, of the changes and forecasts on the quantities and prices of the INPUTS and OUTPUTS, the budget period is made corresponding to the financial-fiscal-accounting year.
One of the most widely used resources for planning is the "Comprehensive Budget". Below is an outline of what it is, its structure and its advantages when applied within organizations.
Key Concepts: Forecast, Forecast, Predict, Augur, Predict, Foreshadow
Description and content of the comprehensive budget
The comprehensive budget is a means of business action that allows to shape in economic terms the decisions contained in the plans and programs.
Budgets
1. Operational or exploitation:
1.1. Sales budget
1.2. Production budget
- Purchasing Labor Expenses Manufacturing
1.3. Expense budget
2. Financial budgets:
2.1. Investment budget
2.2 treasury budget
3. Budgets by program:
3.1. Research and development budget
3.2. Advertising and propaganda budget
3.3. Public relations budget
4. Budget synthesis:
4.1. Social Security Income Statement
4.2. Pension balance
4.3. Cash-flow status
The comprehensive budget is a means of business action that allows to shape in economic terms the decisions contained in the plans and programs.
Budget in the commercial area
Methodologies for setting sales volume
1.Basic concepts for the measurement of demand.
2. Delimitation of the market.
3. Measurement of market and company demand.
4. Estimation of future demand.
Approach and development of commercial management control
The budget of the commercial area:
Two types of budget are distinguished in the commercial area: the sales target budget and the operating expense budget, it is necessary to prepare and control both types of budgets.
The management control of the commercial area:
Generic features. The control equation is like this:
The real behavior of the commercial area is given by the product of the real quantity of sales and the real unit margin of sales.
