Week 7 - Budgetary Planning and Control Flashcards Preview

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Flashcards in Week 7 - Budgetary Planning and Control Deck (3)
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1

What is budgeting?

Budget is: 

  1. a plan 
  2. expressed in monetary terms
  3. covering a future time period
  4. based on a defined level of activity 

2

Purpose of budgeting

  • Implement strategy by allocating resources in line with strategic goals
  • Co-ordinate activities and assist in communication between different parts of the organization
  • Motivate managers to achieve targets
  • Provide a means to control activities
  • Evaluate managerial performance 

3