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 political program quantified in financial terms, prepared prior to a defined end of time... to fix a given objective, A budget is normally for a relatively short period, e.g. 1 year. Purposes of Budgeting A matter of purposes of budgeting have been identified. They include: 1.         Planning. 2.         Resource Allocation. 3.         Co-ordination. 4.          control. 5.         Communication. 6.         Motivation. 7.         Performance Evaluation. Budgetary Control This is a system which uses budgets as a means of unequivocal the activities of the presidential term. It has three main aspects:- 1.         Planning. 2.         Co-ordination. 3.         Control. Planning Budgetary be after is the b vow of preparing detailed, short-term plans for all th e functions, departments and activities of the organisation. It is important that the short-term plans and objectives that deem 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 pop 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 discussing budgetary planning it is important to hear between extrapolations, forecasts and plans. An extrapolation is the continued projection of an exist trend. A forecast pass on be found on an extrapolation, but is adjusted to live with account of any known factors which will affect the trend. A plan involves somewhat intervention by the organisation in order to st ipulate events in such a way as to stool it! more likely that the organisations objectives will be achieved. Co-ordination It is spanking that the plans of... If you essential to get a full essay, order it on our website: OrderCustomPaper.com

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