Definition and coverage of budgeting process

The budgeting process allows an organization to plan and prepare its budgets for a specific time
period. It entails going over previous budgets, identifying and estimating revenue for the coming period,
and allocating funds to spend on a company's various costs.

Master budget and its components (operating and financial budgets)

The master budget is a collection of interrelated budgets that serve as a strategy for a specific time
period.

A master budget has three major components. Operational budgets cover the general expenses and
income of the company. The capital expenditure budget accounts for long-term asset and project costs.
Financial budgets deal with cash flows and financial statistics for businesses.

Individual budgets that result in the creation of the budgeted income statement are referred to as
operating budgets. These spending plans Set objectives for the company's sales and production staff.

Financial budgets are primarily engaged with the cash resources required to cover anticipated
operations and projected capital expenditures. Capital expenditure budgets, cash budgets, and
budgeted balance sheets are all examples of financial budgets.

Types of budget (static, flexible, zero-based, continuous)

Budget variance analysis (static and flexible)

Types of budget (static, flexible, zero-based, continuous)

A static budget is a budget data projection at a single level of activity that occurs before real activity
occurs.

flexible budget projects budget data for various levels of activity

Components of cash flow statements

A cash flow statement's three primary components are cash flow from operations, cash flow from
investing, and cash flow from borrowing.

Interpreting and analysis of cash flow statements

Summary of cash flows