Budget Case

Introduction:

"Accounting system is a tool for communication of data and information to different administrative levels in all projects, no matter how different the nature of its activities, and its size, with a view to planning and decision-making and control, and to achieve economic management. The budget is one of the accounting methods, and the main tool used by the administration in the planning and coordination, control, performance evaluation. Budget is one of the most important planning tools, is a translation the goals of facility, policies, and plans in the form of numbers, is an important tool of coordination tools. It is also a tool of determining responsibility and authority is a planning tool, as well as a regulatory tool, is a tool for follow-up activity of the facility, and to assess its performance, to determine the extent of the progress of work, and the extent of its conformity with the plan. (Matar,M,1997)

Definition:

"A budget is the quantitative expression of a proposed plan of action by management for a specified period, and an aid to coordinate what needs to be done to implement that plan "(Horngren,T,Ch. Datar,M,S. Rajan,V,M,2012).

According Naji,W .(1991) That the budget is not a target, it is a tool and a translation of the plans and goals that administration is seeking to reach it through the translation of goals into financial numbers and quantity. It's a monitoring tool. (Naji,W ,1991)

The main goals of the budget:

1 - Planning.

2 - Monitoring the implementation of operations.

3 - Performance evaluation and incentives.

4 - To facilitate communication and coordination between the different departments or sections.

5 - Distribution of sources available to the different sections, as needed, relative importance, the role of activity, community service. (Naji,W 1991)

The Budget helps the management to achieving certain goals, and to make sure that the actual expenses consistent with planned expenses.

Sales Budget

Definition: Is a quantitative and financial specification of sales to be achieved during the specified period of time, or forecasting the sales activity during a certain period to come. It relied upon mainly on to prepare the rest of the other budgets , such as the estimated budget of production, and the estimated budget of the distribution, and the estimated budget of purchases, etc. (Naji,W ,1991)

According Dsooqi,A.(2002) The basic foundation for financial planning is to predict future sales; also there is a substantial relationship between the company's sales and budget components. (Dsooqi,A,2002)

The increase in sales