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 externalize quantified in financial terms, prepared prior to a defined completion of time... to fix a given objective, A budget is ordinarily for a relatively short period, e.g. 1 year. Purposes of Budgeting A yield of purposes of budgeting have been identified. They include: 1.         Planning. 2.         Resource Allocation. 3.         Co-ordination. 4.          withstand. 5.         Communication. 6.         Motivation. 7.         Performance Evaluation. Budgetary Control This is a system which uses budgets as a means of positive the activities of the government activity. It has three main aspects:- 1.         Planning. 2.         Co-ordination. 3.         Control. Planning Budgetary intend 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 accommodate 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 lot 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 general budget [the bottom up approach].

Extrapolations, Forecasts and Plans In discussing budgetary planning it is impor! tant to hear between extrapolations, forecasts and plans. An extrapolation is the continued projection of an breathing trend. A forecast pass on be found on an extrapolation, but is adjusted to live with account of either known factors which will affect the trend. A plan involves almost intervention by the organisation in order to characterise events in such a way as to enlighten it more likely that the organisations objectives will be achieved. Co-ordination It is spanking that the plans of... If you extremity to get a full essay, order it on our website: OrderCustomPaper.com

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