Final Project: Budgeting
Final Project: Budgeting
Angelica M. Cravens
Course: BUS 630 Managerial Accounting
Instructor: Anthony Perez
October 01, 2012
Final Project: Budgeting
Budgeting is used to help companies stay on track without going over their revenue and not spending too much on expenses. Budgeting is a very important part of a business success. There are many types of budgets that range from households to businesses. There have been new developments in the budgeting area in the last few years. There are some issues when looking at different types of budgets in the workplace some could be considered unethical and some can give an unfair advantage to the departments, it just depends on who is contributing information to the budgets. There are some sources that believe that budgeting should be taken beyond what the traditional budget offers this is known as beyond budgeting.
Types of Budgets
There are many advantages to budgeting which include “budgets communicate management’s plan throughout the organization, budgets force manager to think about and plan for the future, the budgeting process provides a mean of allocating resources to those parts of the organization where they can be used most effectively, the budgeting process can uncover potential bottlenecks before they occur, budgets coordinate the activities of the entire organization by integrating the plans of its various parts, budgets define goals and objectives that can serve as benchmarks for evaluating subsequent performance” (Brewer, Garrison, & Noreen, 2011, p. 288).
There are many types of budget that are used from households to businesses. According to Brewer, Garrison, and Noreen (2011), a budget is, “a detailed plan for the future, usually expressed in formal quantitative terms” (p. 32). The budgets are used in different time periods, some companies use a continuous budget or perpetual budget which is a twelve month budget that rolls forward one month and there is a participative budget or a
Angelica M. Cravens
Course: BUS 630 Managerial Accounting
Instructor: Anthony Perez
October 01, 2012
Final Project: Budgeting
Budgeting is used to help companies stay on track without going over their revenue and not spending too much on expenses. Budgeting is a very important part of a business success. There are many types of budgets that range from households to businesses. There have been new developments in the budgeting area in the last few years. There are some issues when looking at different types of budgets in the workplace some could be considered unethical and some can give an unfair advantage to the departments, it just depends on who is contributing information to the budgets. There are some sources that believe that budgeting should be taken beyond what the traditional budget offers this is known as beyond budgeting.
Types of Budgets
There are many advantages to budgeting which include “budgets communicate management’s plan throughout the organization, budgets force manager to think about and plan for the future, the budgeting process provides a mean of allocating resources to those parts of the organization where they can be used most effectively, the budgeting process can uncover potential bottlenecks before they occur, budgets coordinate the activities of the entire organization by integrating the plans of its various parts, budgets define goals and objectives that can serve as benchmarks for evaluating subsequent performance” (Brewer, Garrison, & Noreen, 2011, p. 288).
There are many types of budget that are used from households to businesses. According to Brewer, Garrison, and Noreen (2011), a budget is, “a detailed plan for the future, usually expressed in formal quantitative terms” (p. 32). The budgets are used in different time periods, some companies use a continuous budget or perpetual budget which is a twelve month budget that rolls forward one month and there is a participative budget or a
References: André, A. d. W. (2005). Is your organization ready for beyond budgeting? Measuring Business Excellence, 9(2), 56-67. Retrieved from http://search.proquest.com/docview/208748235?accountid=32521 Brewer, P. B., Garrison R. H., & Noreen, E. W. (2011). Managerial accounting for managers (2nd ed.). New York, NY: McGraw Hill. Udo, S. I. (2012). The budget as a management tool: Zero base budgeting, panacea to budget implementation in Nigeria. Global Journal of Social Sciences, 11(1), 1-7. Retrieved from http://search.proquest.com/docview/1036581432?accountid=32521