Planning of Profits Sales and Costs.
Budgeting Profit-Sales-Costs and Expenses Human Behavior
Effective Planning and control of operations depend upon cost accounting which provides management with detailed statements of the actual cost of materials, Labor, Factory overhead, Marketing expenses , and administrative expenses.
Comparisons and analyses of these actual costs with estimates and standards prepared in advance of production and sales enable management to identify the reasons for any differences.
Profit Planning:
The terms Profit Planning and budgeting can be viewed as synonymous.Profit Planning is a well thought-out operational plan wit its financial implications expressed in the form of long and short range income statements, balance sheets,and cash and working capital projections.
