Budget, Project Management

Budget

A budget is a financial preparation or planning and a record of all planned expenses and revenues. It is a plan for borrowing, saving and spending.

A budget is a significant concept in microeconomics, which utilizes a budget line to exemplify the trade-offs between two or more goods. In other words, a budget is an organizational plan presented in monetary terms.

Summing up, the aim of budgeting is to:

  • Provide a forecast of revenues and expenditures, i.e. make a model of how our business might work financially if some strategies, events and plans are occurred.
  • Facilitate the real financial operation of the business to be calculated against the forecast.
  • Establish the cost limitation for a program, project or operation.

Why do we produce budgets?

Budget assists to aid the planning of real operations by forcing managers to consider how the conditions might vary and what steps must be taken now and by encouraging managers to consider problems before they takes place. It also assists in co-ordinate the activities of the organization by convincing managers to examine relationships between their operation and those of the another departments. Other basics of budget include:

  • To direct resources
  • To communicate plans to several responsibility center managers.
  • To motivate managers to try hard to attain budget goals.
  • To assess the performance of managers
  • To give visibility into the company's performance
Posted Date: 9/27/2012 4:00:53 AM | Location : United States







Related Discussions:- Budget, Assignment Help, Ask Question on Budget, Get Answer, Expert's Help, Budget Discussions

Write discussion on Budget
Your posts are moderated
Related Questions
Question 1: (a) What are the factors that you would consider to determine the causes of Equipment failures during its life cycle? (b) Explain clearly the failure patter


Balance of Payments A summary of balance of payments in the statement of international transactions between U.S. residents and residents of foreign nations serves as a measure

The product development cycle starts with the assessment of the customers needs and ends when the design is finally released for bulk production. The main steps in th

Network Infrastructure: This project will require replacement of major networking components throughout the office. Virtualization will result in increased speed and reliability f

Q1.  Explain the procedure of MODI method of finding solution through optimality test. Q2.  a. Explain the steps in Hungarian method. b. Solve the following assignment proble

Question 1: a) Outline the key responsibilities of an Event Manager b) Give THREE clear working examples of possible event objectives for either a country, a resort, an or

1. Objective ( Theme ) : Continuous quality improvement at every level at every place and at every stage. 2. Approach :Management involvement and leadership, Empowering s

Question: (a) The National Printing Company has been losing customers and orders due to various delays and errors. The Company wants to identify the problems that might be con

The objectives of assignment are to determine what best practices apply to project implementation and close out, and to apply your individual knowledge of the quantitative topics t