presentasi ch9 budget

Chapter 9

Budget Preparation
Mujtahid Subagyo
mujtahid@uny.ac.id

Nature of Budget

Relation to Strategic Planning

Contrast with Forecasting

Use of Budget
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Fine tuning the Strategic Plan
Coordination
Assign Responsibility

Basic for Performance Evaluation

Content of an Operating Budget

Operating Budget Categories
• Revenue Budget
• Budgeted Production Cost and Cost of
Sales
• Marketing Expenses
• General and Administrative Expenses
• R&D Expenses
• Income taxes

Other Budgets
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Capital Budget

Budgeted Balance Sheet
Budgeted Cash Flow Statement
Management by Objectives

The Budget Preparation Process
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Organization
Issuance of Guidelines
Initial Budget Proposal
Negotiation
Review and Approval
Budget Revisions

Behavioral Aspects

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Participation in the Budgetary Process
Degree of Budget Target Difficulty
Senior Management Involvement
The Budget Department

Quantitative Techniques
• Simulation
• Probability Estimates
• Contingency Budgets