cash budget

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4 advantages of using a cash budget as management control tool.

Cash budget is the budget which present expected cash inflow and outflow of the entity for the designated time period. Cash budget is prepared for purpose of cash planning and control.

The following are advantages of using a cash budget as management control tool:



Cash budget help to determine whether cash balance remain sufficient to … Read the rest

Budget center – meaning

A budget center is a section of the organization of the undertaking defined for the purpose of budget control. Budget centers should be established for cost control and all the budgets should be related to cost centers. Budget centers will disclose the sections of the organization where planned performance is not achieved. The budget center must be separately delimited … Read the rest

Budget and budgeting revision question (for ACCA examination revision)



Tanzania Glass Company is preparing its cash budget for the first quarter of 2015. The use of the company’s main manufacturing equipment is characterize by frequent stoppages to let it cool down to operating temperatures, a reminder that the equipment is due for replacement. The resulting slow pace of production has led to the incurrence
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What is cash budget?

Cash budget is the budget which present expected cash inflow and outflow of the entity for the designated time period. Cash budget is prepared for purpose of cash planning and control. The cash budget helps management keep cash balance in reasonable relationship to its needs. It aid in avoiding unnecessary idle cash and possible cash shortages

The cash budget consists

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Revision question on preparation of cash budget.



One of the first job that have been assigned to you as a new of Mwananchi Construction Company is to prepare a cash budget for the period from 1stjune 2014 to 30thNovember 2014.

  • 90% of all sales are credit sales;80% of the credit sales are collected in the following month,15% and 4% of the credits
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