D076 Module 8 AQA WITH COMPLETE SOLUTION

cash budgeting - a plan for controlling cash inflows and outflows business to balance income with expenditures fixed expenditures - an expense that you do not have direct control over and that remains constant from period to period How do the benefits of knowing the cash position for each period differ between businesses and individuals? - Knowing the cash position allows businesses to recognize when short-term loans are needed, while it allows individuals to analyze progress toward their personal financial goals. How far into the future do cash budgets usually forecast? - Between one month and one year In what situation might the software method of tracking be preferable to the spreadsheet method of tracking? - When a person has a hard time remembering to record their cash flows and when they prefer to use a card to make purchases Correct! The software method is convenien Methods of tracking a budget include; - the envelope method, spreadsheets, and software Tracking - the process of recording cash flows variable expenditues - an expense that you have direct control over and that can change from period to period W&H Company wants to create a cash budget to better manage its cash flows. The financial manager knows that the firm's labor costs and materials costs are too high for the level of sales each month. The