Explanation should include
- components of cash budgets
- anticipated revenues
- production costs
- overhead costs
- profit
- factors affecting management of cash budgets
- price fluctuations of inputs/outputs
- financial investment performance
- capital purchases
- human resources
- components of cash budgets to minimize liabilities and maximizing profit
- delayed payment of expenses
- prepayment of expenses.
Process/Skill Questions:
- What are strategies one could use to manage components of cash budgets to minimize liabilities and maximize profit?
- What factors affect management of cash budgets?
- What are advantages and disadvantages associated with cash budgets?