İŞLETME FİNANSI I

Divisional proforma and realized budgets and divisional financial reports are required for the financial planning process. Cash flow estimations and funding requirements are amongst the outputs of the financial planning process.

The first step of the short-term financial planning is sales forecast which is used to develop production plans.

The direct labor budget is used to determine the required labor hours in order to produce the volume of products as stipulated in the production budget. The responsibility to prepare the direct labor budget belongs to production managers
together with cost accounting, human resources and budget control divisions.

Manufacturing overhead consist of any expenses directly related with the production except direct materials and direct labor. Structurally manufacturing overhead may be in the form of fixed or variable costs.

Preparation of a proforma balance sheet involves four basic steps:

An accepted router to establish a financial control infrastructure within a company involves the following steps:

The flexibility of financial planning by the use of the capabilities of information technology enables to realize scenario analysis to evaluate the effects of the possible financial and environmental changes on corporate activities in the future.

There are two main methods for preparation of cash budgets:

The other methods mentioned in other options are for sales forecasting

Percentage of Sales Method: Firstly, the accounts mostly affected by the changes in the sales volume are determined. Amongst these accounts are inventories, cash on hand and banks, as well as trade receivables. Typically equity and affiliate accounts are not directly affected from the changes in sales volume. The method can be applied in the means of daily sales or sales percentage approach. Sales Percentage Method is the mostly preferred method.

Financial controls are the means by which an organization’s resources are directed, monitored, and measured. It is fact that budgets and proforma financial statements are the major tools of financial control.