DISCUSS HOW A COMPANY MANAGER CAN USE THE INSTRUMENTALITY OF CASH VOLUME PROFIT ANALYSIS TO EFFECT THE FOLLOWING DECISION
MAKE OR BUY DECISION
KEEP OR DROP DECISION
ACCEPT OR REJECT DECISION
DISCUSS HOW A COMPANY MANAGER CAN USE THE INSTRUMENTALITY OF CASH VOLUME PROFIT ANALYSIS TO EFFECT THE FOLLOWING DECISION
MAKE OR BUY DECISION
KEEP OR DROP DECISION
ACCEPT OR REJECT DECISION
Cash budget is usually prepared month wise, budget period being a quarter or half of a year. It is an estimate of cash flows during a month to reflect the balance at the end of each month. The main purpose is cash management to match the receipts and payments and to have a desired surplus at the end of each month. If it is seen that the payments of a particular month could not be met with the possible receipts,budget tells you sufficiently in advance, by a negative figure, that extra funds will have to be arranged for from outside sources.
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