Approaches to budgeting

Budgets can be divided into different categories.

Objective and flexible budgets take different approaches to planning.

Objective budgets are based on finding the best on achieving particular objectives. They contain information on how a business will achieve these objectives. For example, a sales budget might show how a sales target will be met.

Flexible budgets are designed to change as business changes. Changes in business conditions may result in very different outcomes than those budgeted for. A flexible budget takes these into account. For example, the sales budget may be altered if there is sudden increase in demand resulting in much higher sales levels.

A business will also set budgets over the long term and the short term.

Capital budgets plan the capital structure and the liquidity of a business over a long period of time. They are concerned with equity, liabilities, fixed and current assets and year-end cash balances.

Operating budgets plan the day-to-day use of resources. They are concerned with materials, labor, overheads, sales and cash. There are three important operating budgets. The profit budget estimates the annual business costs, the year’s turnover and the expected profit for the year. The cash budget simply plans the receipts and payments. It shows a firm its cash balance at specified times in the budget period.

The budgeted balance sheet incorporates the budgeted profit and loss account and the closing balance in the cash budget. It also takes into account planned changes in assets and liabilities.

Задание 15. Переведите деловое письмо с русского языка на английский язык:

LETTER 5

Уважаемые господа!

К сожалению, сообщаем Вам, что товар, поставленный первой партией, имел незначительные повреждения.

Мы осмотрели поврежденные части машин и ниже представляем Вам описание повреждений. Для того, чтобы отремонтировать описанные повреждения, были подсчитаны следующие расходы:….

Мы намереваемся настаивать, чтобы поврежденные части были Вами заменены срочно и за Ваш счет, так как они появились по Вашей вине.

Если Вы не сможете заменить дефектные части машин, мы готовы принять присланный товар, если Вы согласитесь дать значительную скидку с цены.

Надеемся, что Вы рассмотрите этот вопрос как можно скорее.

С уважением,…..

Задание 16 . Прочитайте и переведите текст по специальности со словарем:

Stock exchange is a market in which securities are bought and sold. There are stock exchanges in most capital cities, as well as in the largest provincial cities in many countries, and over twenty in Britain. The principal stock exchange in Britain is known as the Stock Exchange, and is located in Throgmorton Street in the City of London; the New York Stock Exchange is located and is known as Wall Street. Continental European exchanges are often referred to as Bourses. The economic importance of stock exchanges is that they facilitate saving and investment, first through making it possible for investors to dispose of securities quickly if they wish to do so and secondly in channeling savings into productive investments. Ready marketability requires that new issues should be made or backed by reputable borrowers or institutions that information should be available on existing securities, and that should be both a legal framework and market rules to prevent fraud and sharp practice. Stock exchanges have their own rules and conventions, but their functioning depends also on the existence of company and other law and financial intermediaries, such as the issuing houses.

The British Stock Exchange, founded in 1773, developed from informal exchanges in coffee houses in the City of London. It is managed by a council of members. There are some 3,500 members, who alone may deal or even enter the floor of the exchange.

Stock-brokers act as agents for the public and buy from and sell to jobbers. Members are formed into a declining number of companies and there are now only 192 broking firms and 91 jobbing firms on the London Exchange. Business is conducted entirely by word of mouth and although jobbers and brokers keep their own registers and may record details of a “bargain” (as all transactions are called) on the official list, they are not obliged to do so. Even today there are no official statistics of the volume of transactions, although prices at the exchange are widely available in the press.

Задание 17. Прочитайте специальный текст и перескажите его содержание на английском языке: