“The traditional budget is a rigid tool and therefore be discarded in practice”. Should the traditional budgetary model be abandoned as suggested above? Introduction What is budget and budgeting? Budget is a financial plan, which is tailored individually for each entity covering specific future period of time and which enables to determine manager’s targets and to predict the consequence of that specific financial period (Langfield-Smith, et al., 2006). Budgeting has been recognized
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companies should make it carefully. To begin with I'd like to explain what does «budget» mean. A budget (from old French bougette, purse) is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.[1] A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting
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to gather data from the state corporation’s managers of the sampled state corporations. 14 corporations were selected from the 138 to participate in the study. Purposive sampling was used to select 42 corporate services manager, finance manager and budget officer from each corporation to participate in the study. A questionnaire, whose content validity was checked through an expertise opinion and reliability through test pre-test methods, was used to gather information. Findings indicate that a positive
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Chapter 8—The Master Budget LEARNING OBJECTIVES |LO 1 |Why is budgeting important? | |LO 2 |How is strategic planning related to budgeting? | |LO 3 |What is the starting point of a master budget and why? | |LO 4 |How are the
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9 Profit Planning Solutions to Questions 9-1 A budget is a detailed quantitative plan for the acquisition and use of financial and other resources over a given time period. Budgetary control involves using budgets to increase the likelihood that all parts of an organization are working together to achieve the goals set down in the planning stage. 9-2 1. Budgets communicate management’s plans throughout the organization. 2. Budgets force managers to think about and plan for the future
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ITS BACKGROUND Introduction A budget is an estimation of the revenues and expenses at a given time. It is the amount allocated to certain asset or expense as an exchange for that asset or to the usage that led to that expense. According to an article from entrepreneurship.org, the business planning starts with budgets. Budgeting is not an afterthought. Your budget is a reflection of the goals and strategies you have for each area of business. A one-year budget planning document for the firm that
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monitoring a budget. It will help you with an overall organisational budget as well as with a budget for a specific project. It includes tools for estimating costs as well as tips for ensuring that your budgets meet the needs of your project or organisation. In the examples section we give actual examples of budgets and how they can be monitored. Why have a toolkit on budgeting? Budgeting is the key to financial management. The toolkit will help you plan, develop and use budgets effectively
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objectives and the preparation of various budgets to achieve these goals * Controlling involves the steps taken by management to ensure that the objectives set down at the planning stage are attained, and to ensure that all parts of the organization function are in a manner consistent with organizational policies A government budget is a plan for financing its activities for a fiscal year prepared and submitted by responsible executive * The budget is an estimate of the proposed expenditures
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at it in my office (ST-S 3045). Part 1 (10 points) Use the information in Appendix A to complete the following: | | Actual Results | Flexible Budget | | Flexible Budget | Sales Activity | | Master Budget | | | |Variances | | |Variances | |
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Each page specified a different budget constraint- 20 (low), 40 (medium), 60 (high) mate dollars. Results: * The dependent variables were percentages spent on each characteristic. * Planned contrasts were used to test each prediction. Spending for Necessities with a Low Budget: * Women spent the highest proportion of their low budget on intelligence and yearly income. * The planned contrast was… * Men spent the highest proportion of their low budgets on physical attractiveness and
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