What is the point of producing cash budgets

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1. Budgets, forecasts and plans: I am unsure as to the differences (if any) between these terms. Would you please explain these differences and the significance these differences would have for me.

2. Budgets and standards: Is a budget the same as a standard? I have always worked on the assumption that it was.

3. Cash budgets: What is the point of producing cash budgets when we already spend an enormous amount of time on producing profit-based budgets? Producing cash budgets seems superfluous when we are in a profit-making position. Surely cash budgets are only relevant when a bank overdraft situation is likely?

Reference no: EM13878934

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