5. What are the 2 purposes of a budget?
Planning Control
• What revenues will come in? • How frequently will the budget be
• What fixed expenses must be monitored?
paid? • What range (+/-) will be allowed
• What variable expenses will be as normal business?
necessary? • Will the variances be calculated
• What discretionary expenses will manually or automatically?
come up? • Who will be responsible for
reviewing the report?
• Who will be held accountable for
corrective actions?
• What is the process if the
variance persists?
• How will the results be used to
prepare the next forecast leading
to the next budget?
1/27/11 Bruin Professionals – South Bay