CMA Exam Study Notes: The Production Budget

CMA Exam Study Notes

The Production Budget of an enterprise is based on its sales budget. Typically, the production budget is in line with the capacity and inventory needs of the enterprise. Production Plans and Inventory Levels When an enterprise receives a huge order unexpectedly, it will need to boost its inventory level to deliver the finished goods in time. Here, when the enterprise … Read More

CMA Exam Study Notes: Annual/Master Budget

CMA Exam Study Notes

The Annual Budget, commonly known as the Master Budget, comprises of various budgets of an enterprise. Developing an annual budget for a large business takes several months to complete. The Development of the Annual Budget The Annual budget of an enterprise can be fully developed only when all its other budgets have been entirely finished. For instance, the purchase budget … Read More

CMA Exam Study Notes: The Cash Budget

CMA Exam Study Notes

The most important budget of an enterprise is known as the Cash Management Budget or the Working Capital Budget. This budget extracts information from all the other budgets. For this reason, the Cash Budget is developed after all the other budgets are completed. The cash budget meticulously accounts for cash inflows and outflows on a quarter-by-quarter, and month-by-month basis. This … Read More

CMA Exam Study Notes: Planning & Budgeting Concepts

CMA Exam Study Notes

CMA Exam: The Planning & Budgeting Process There are various types of budgets such as flexible, zero-based, and static. Something “not being in the budget” is a common reason all of us have heard being mentioned at one time or another. A budget is prepared well ahead of the period that it comprises, and it is basically based on historical … Read More

CMA Exam Study Notes: Top 10 Best Practices of Budgeting

CMA Exam Study Notes

Business budgeting is an extremely important financial tool available to any enterprise. Maintaining both short and long-term financial plans enable enterprises to control their cash flow, profitability, cost, etc. Here’s a list of the top 10 best practices of budgeting: Best Practice #1: Short & Long-Term Plans The most efficient financial budget comprises of both short-term month-to-month plan for a … Read More