Week 9- Introduction to budgeting

Question 1

What is a budget?

Answer 1

A budget is a detailed financial plan which considers income and expenditure

Question 2

What are the two main ways to create budgets?

Answer 2

1- Top down
2- Bottom up

Question 3

What is included in the budgeting process?

Answer 3

1- Setting objectives
2- Analysing resources
3- Negotiating operational requirements
4- Co-ordinating resources
5- Obtaining approval
6- Distributing budgets

Question 4

What are the roles of budgeting?

Answer 4

1- Planning
2- Control
3- Communication and co-ordination
4- Performance evaluation

Question 5

What are the issues with traditional budgeting?

Answer 5

1- Gaming
2- Budgetary slack
3- Time consuming