Budgeting - A Budget is a plan expressed in financial terms.

BUDGETING A Budget is a end expressed in pecuniary terms. C.I.M.A. defines a figure as A devise quantified in financial terms, prepared prior to a defined extremity of time... to fix a given objective, A budget is ordinarily for a relatively short period, e.g. 1 year. Purposes of Budgeting A repress of purposes of budgeting have been identified. They include: 1.         Planning. 2.         Resource Allocation. 3.         Co-ordination. 4.          distinguish. 5.         Communication. 6.         Motivation. 7.         Performance Evaluation. Budgetary Control This is a system which uses budgets as a means of compulsive the activities of the presidential term. It has three main aspects:- 1.         Planning. 2.         Co-ordination. 3.         Control. Planning Budgetary homework is the b vow of preparing detailed, short-term plans for all the functions, departments and activities of the organisation. It is important that the short-term plans and objectives that show up the budget are related to the long-term plan and objectives of the organisation. The budget may be drawn up by preparing an boilersuit budget for the organisation which is and then broken batch into more detailed budgets for the different parts of the organisation [the top-down approach] or by devising budgets for the various parts of the organisation and then bringing them together to build up the overall budget [the bottom up approach].

Extrapolations, Forecasts and Plans In d iscussing budgetary planning it is important! to hear between extrapolations, forecasts and plans. An extrapolation is the continued projection of an alert trend. A forecast pass on be ground on an extrapolation, but is adjusted to live with account of about(prenominal) known factors which will affect the trend. A plan involves some intervention by the organisation in order to transform events in such a way as to make it more likely that the organisations objectives will be achieved. Co-ordination It is spanking that the plans of... If you compulsion to get a full essay, order it on our website: OrderCustomPaper.com

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