Chapter 2 Revenue budgets Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Forecasting methods Qualitative methods: rely on attitudes, beliefs, feelings and experience. Jury of executive opinion Sales force composite Delphi technique Market research Quantitative methods: more objective, use mathematical models. Time serious models Causal models Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Factors affecting revenue budgets Past sales levels for business and entire industry. General economic trends. Economic trends in the business’s industry. Climatic changes affecting industry. Political and legal events. Intended pricing policy. Planned advertising. Expected actions of competitors. Market research studies. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Types of revenue budgets Sales by product. Sales by product and period. Sales by area and period. Sales by product, area and period. Fees income by type of service. Sales and fees income by period. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Sale by product Sales budget for the year ending June 30 Type of biscuit Sales volume kg Sales price $ Sales $ Sweet Hearts Cherry Surprises Chocolate Supremes Almond Delights Total sales $ Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Sales by product and period Sales budget for the quarter ending 31 March Jan Feb March Total Hot Dogs Sales volume Selling price $ Sales $ Pies Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld

Fees income budget for the quarter ended 30 September July Aug Sept Total Normal consultations No. of patients Fee per visit $ Fees income $ Home visits Fees income Total fees income $ Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld