Free budget Essays and Papers - 123HelpMe.
A budget is a statement of the revenue and expenses that a company expects to experience over a particular period of time. It’s a plan to control expenses and ensure that there is enough money available to finance current commitments and future projects.The ultimate conclusion of the operating budget is the pro forma income statement and the operating profit margin. The operating profit margin is not the same as net profit, which you cannot calculate until you prepare the financial budget. The operating budget is prepared before the financial budget since many of the financing activities aren 't known until the operating budget is prepared.These statements show the financial health of organisation. Second part of this essay is base on the numerical part and explanation for that I construct hypothetical example of budget data regarding pizza company. Compare the actual budget with planned budget and find how we know about the variance. Then how management take corrective actions.
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