Test next week. I’m presuming that my Try-2 teammate from the previous test is still going to be working with me on this one, but she’s not here today. Dropped her an email about it; we’ll see what develops.Chapter 9: Budgeting
A budget is a detailed plan for acquiring and using financial and other resources over a specified period.
Purposes of Budgeting
- Communicate management’s plans throughout organization
- Force managers to give planning high priority
- Aid in allocating resources to their most effective uses
- Uncovers potential bottlenecks
- Coordinates the activities of the entire organization
- Define goals and objectives that serve as benchmarks for evaluating performance
Budgeting is heavily concerned with cash flow. Not all expenses affect cash flow at any given time. Expenses accrue continually, even if they’re paid as lump sums.