Lesson 14-1 Budget Planning 4/29/2019 LESSON 14-1 Budget Planning RED

BUDGET FUNCTIONS Planning Operational control Department coordination Lesson 14-1 4/29/2019 BUDGET FUNCTIONS page 413 Planning Operational control Department coordination LESSON 14-1 RED

BUDGET PERIOD Long-range budget Annual budget Quarterly budget Lesson 14-1 4/29/2019 BUDGET PERIOD page 413 Long-range budget Annual budget Quarterly budget Monthly budget LESSON 14-1 RED

SOURCES OF BUDGET INFORMATION Lesson 14-1 4/29/2019 SOURCES OF BUDGET INFORMATION page 414 Company records General economic information Company staff and managers Good judgment LESSON 14-1 RED

COMPARATIVE INCOME STATEMENT Lesson 14-1 4/29/2019 COMPARATIVE INCOME STATEMENT page 415 LESSON 14-1 RED

INTERPRETING THE COMPARATIVE INCOME STATEMENT Lesson 14-1 4/29/2019 INTERPRETING THE COMPARATIVE INCOME STATEMENT page 416 Compare the percentage change in expenses or costs to the percentage change in sales. Effect on net income If the % increase  in expenses or costs > the % increase  in sales, net income  decreases. Unfavorable If the % increase  in expenses or costs < the % increase  in sales, net income  increases. Favorable If the % decrease  in expenses or costs > the % decrease  in sales, net income  increases. If the % decrease  in expenses or costs < the % decrease  in sales, net income  decreases. LESSON 14-1 RED

TERMS REVIEW budgeting budget budget period page 417 budgeting budget budget period comparative income statement LESSON 14-1