Chapter 2 Revenue budgets Copyright 2003 Mc GrawHill

Chapter 2 Revenue budgets Copyright 2003 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 1

Forecasting methods s Qualitative methods: rely on attitudes, beliefs, feelings and experience. § § s Jury of executive opinion Sales force composite Delphi technique Market research Quantitative methods: more objective, use mathematical models. § § Time serious models Causal models Copyright 2003 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 2

Factors affecting revenue budgets s Past sales levels for business and entire industry. s General economic trends. s Economic trends in the business’s industry. s Climatic changes affecting industry. s Political and legal events. s Intended pricing policy. s Planned advertising. s Expected actions of competitors. s Market research studies. Copyright 2003 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 3

Types of revenue budgets s Sales by product and period. s Sales by area and period. s Sales by product, area and period. s Fees income by type of service. s Sales and fees income by period. Copyright 2003 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 4

Sale by product Sales budget for the year ending June 30 Type of biscuit Sales volume kg Sales price $ Sales $ Sweet Hearts Cherry Surprises Chocolate Supremes Almond Delights Total sales $ Copyright 2003 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 5

Sales by product and period Sales budget for the quarter ending 31 March Jan Feb March Total Hot Dogs Sales volume Selling price $ Sales $ Pies Sales volume Selling price $ Sales $ Copyright 2003 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 6

Fees income budget for the quarter ended 30 September July Aug Sept Total Normal consultations No. of patients Fee per visit $ Fees income $ Home visits No. of patients Fee per visit $ Fees income Total fees income $ Copyright 2003 Mc. Graw-Hill Australia Pty Ltd PPTs t/a Budgeting, second edition, by Banks & Giliberti Slides prepared by Mya Aronfeld 7