1. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 2-1 Chapter 2 Revenue budgets

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

3. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 2-3 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.

4. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 2-4 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.

5. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 2-5 Sale by product Sales budget for the year ending June 30 Type of biscuitSales volume kg Sales price $ Sales $ Sweet Hearts Cherry Surprises Chocolate Supremes Almond Delights Total sales $

6. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 2-6 Sales by product and period Sales budget for the quarter ending 31 March JanFebMarchTotal Hot Dogs Sales volume Selling price $ Sales $ Pies Sales volume Selling price $ Sales $

7. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 2-7 Fees income budget for the quarter ended 30 September JulyAugSeptTotal Normal consultations No. of patients Fee per visit $ Fees income $ Home visits No. of patients Fee per visit $ Fees income Total fees income $