To look at retail budgeting. Budgeting outlines a retailer’s planned expenditures for given time based on expected performance cost are linked to goals.
There are six preliminary decisions.
- responsibility is defined by top=down and/or bottom-up methods.
- The time frame is specified
- Budgeting flexifrequencyy is set
- Cost categories are estiablished
- The level of detail isascertained
- Budgeting flexibility is determind.
The ongoing budgeting process then process goal performance standards planned spending actual expenditures, monitoring results, and adjustment.
With zero based budgeting, each budget starts from scratch with incremental budgeting current and part budgeting are guides. The budgeted versus actual profit and loss statement and the percentage profit and loss statement are vital tools. In all budgeting decision