Skip to main content
Posted: 16 December 2020

Key Drivers for ‘Predictive Accounting’

Business Advisory Services Updates

The key driver for utilising ‘Predictive Accounting’ is to clearly summarise the various “non-financial items” before attempting to produce a budget.

‘Predictive Accounting’ embraces a systematic approach to the preparation of budgets, starting with basic information relating to:

  • The types of products to be manufactured.
  • The targeted quantity of the various products to be produced daily.
  • The labour time involved in the production of each type of product.
  • The direct costs expected to be incurred on a daily basis for the various types of products.
  • The labour cost for each product being produced.
  • The supplier payment terms for the external purchases required for each product.
  • The estimated total cost of the individual products.
  • The estimated selling price for the various types of product.
  • The estimated number of stockholding days required.
  • The budgeted sales volume for the various products each week.
  • The estimated number of days credit that credit customers will want.
Key Drivers for ‘Predictive Accounting’

Recent Posts...

Tags used in post...