Sunday, November 2, 2008

Performance based budgeting

12 steps in preparing the performance or outcome based budgeting

1. Cost volume profit Analysis - the right profit plans
2. Adequate Working Capital
3. Minimizing Fixed Assets
4. The Marketing Performance Plan
Maximise P/S and maximise S/A
5. The Production Performance Plan - make or buy strategy
6. The targeted ROE
7. The cash flow feasability
8. The borrowings and the repayment with interests.
9. The Finance Performance Plans
10. The present value calculations
11. Healthy performance standards on all Key Result Areas
12. Draw up the Income Statement and Balanced Sheet.

(c) copyright 2008



the 12 steps in performance based budgeting
which are more quantitative, strategic, comprehensive and performance based approach

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