The most important budget of an enterprise is known as the Cash Management Budget or the Working Capital Budget, and it’s an important topic to study for the Certified Management Accounting exam. 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 … Read More
CMA Exam Study Notes: Planning & Budgeting Concepts
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
Business budgeting is an extremely important financial tool available to any enterprise and it’s a big area of study for the CMA exam. 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 … Read More
CMA Exam Study Notes: The Budget Development Process
The budget development process commonly includes the preparation of budget guidelines and directives; a mechanism for synchronizing the budget preparation and review; procedures to expedite budget review, analysis, modification, and adoption; reporting on variances; and use of the variance reports. The whole process can be classified under the following steps: Step #1: Budget Guidelines & Directives This is the first … Read More
CMA Exam Study Notes: Characteristics of Successful Budgeting
What are the most important characteristics of successful budgeting to learn about for the CMA exam? To be successful, a budget must be Well-Planned, Flexible, Realistic, and Clearly Communicated. The Budget Must Address the Enterprise’s Goals Essentially, a budget must begin with the enterprise’s short and long-term plans and goals. The budget should not just to recreate the enterprise’s previous … Read More
