Title: Describe types, purposes, and uses of budgets.
Course: Marketing Management (12166) > Section: Budgeting Marketing Efforts

Description should include

- a delineation of the major types of budgets and their uses in business decision-making and in obtaining financing (internal vs. external)
- a commentary on the uses of these tools in business decision-making and in obtaining financing (internal and external)
- definitions of the following terms
  - budget
  - balance sheet
  - income statement
  - asset
  - liability
  - owner’s equity
  - income
  - cost of goods
  - expenses
  - gross profit
  - net profit
  - zero-based budgeting
  - free-on-board (FOB) port
  - cash flow
  - audit
  - return-on-investment (ROI).

Process/Skill Questions:

- Who might have input into the budget-preparation process?
- Why is it important for a firm to use a budget?
- How are budgets used by marketing managers?
- What is the role of forecasting in the budget process?
- Why should budgets be revisited on a regular basis?
- How should unexpected costs be factored into the budget?