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
Value Engineering

Question 1: "Matrix structures are becoming more common and are likely to continue to do so in the future" (Field and Keller, 1998). a) Describe likely problems with functio

Define the Design phase of the project management. Design phase:   The list of needs which is developed within the definition phase can be utilized to make design alte

Question 1: Describe Total Quality Management. What are the Costs involved with respect to ‘Quality'? Cost of Quality Meaning of TQM Quality Control Costs

A2. Unfortunately, the Capital Investment Committee refused to approve your recommendation (Problem 1) since you did not consider the uncertainty inherent in these types of investm

Compare and Contrast the KN346 investment and the "plain vanilla" alternative.

Factor Affecting Process Planning - Choice of Plant Layout While deciding the sequence of operations the plant layout is to be taken into consideration. The sequence of operat

what are the objective of the project alignment session program?

P roject value The organisations add value to the business through the series of processes. Increasingly such processes are usually undertaken within the context of the projec

Creating a Risk Management Plan  The main aim of risk management is to develop a well-structured approach to deal with any kind of uncertainty, which create threats in the proj