budget

The first major component of internal accounting systems for management’s use is the company’s system for establishing budgetary plans and setting performance standards. The setting of performance standards (see below Performance reporting) also requires a system for measuring actual results and

Once a firm’s general goals for the planning period have been established, the next step is to set up a detailed plan of operation—the budget. A complete budget system encompasses all aspects of the firm’s operations over the planning period. It may even allow…