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Lesson 10. Managing Your Budget > The 30-Second Recap - Pg. 47

Managing Your Budget 47 It doesn't take much to learn budgetary analysis, and your overall awareness of the budget increases your influence and control over the decisions leading to its approval. The 30-Second Recap · The legal and business nature of an organization dictates how budgeting and accountability are approached. · Certain universal principles of bookkeeping and accounting should be followed. · Ratio analysis uses a set of simple equations to analyze historic and projected financial per- formance. · COGS and gross sales allow you to quantify sales costs, categories of costs, and their relation- ship to sales. · Breakeven analysis allows you to determine how much sales are necessary to cover expenses. · Significant budget analysis can be conducted with simple comparisons of departmental costs to sales.