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 stick out quantified in financial terms, prepared prior to a defined compass point of time... to fix a given objective, A budget is unremarkably for a relatively short period, e.g. 1 year. Purposes of Budgeting A summate of purposes of budgeting have been identified. They include: 1.         Planning. 2.         Resource Allocation. 3.         Co-ordination. 4.          retard. 5.         Communication. 6.         Motivation. 7.         Performance Evaluation. Budgetary Control This is a system which uses budgets as a means of lordly the activities of the presidency. It has three main aspects:- 1.         Planning. 2.         Co-ordination. 3.         Control. Planning Budgetary planning is the b vow of preparing detailed, short-term plans for all the fun ctions, departments and activities of the organisation. It is important that the short-term plans and objectives that agnise 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 hatful 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 boilers suit 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 living trend. A forecast pass on be base on an extrapolation, but is adjusted to live with account of any(prenominal) known factors which will affect the trend. A plan involves around intervention by the organisation in order to stipulate events in such a way as to lead 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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