It is important to remember that budgeting is also the allocation of values, not just monetary apportionment. Those offices or work units who look very important (particularly through their charismatic/influential leaders) would always gain priority for better budget consideration. On th other hand, those offices which would be headed by non-influential leaders could receive less budgetary allocation as compared to the other offices. Thus, sometimes the type of functions carried out may be overlooked. Would you please inform us your experiences? What do you think?
First of all we should understand WHAT IS BUDGET-
Budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volume and revenues, resource quantities, costs and expenses, assests, liabilities, cash flows etc.
So Basically In Budget we decide what amount we should incure in a particular period of time so that we can effectively manage our resources optimum, after the year end we compare budgeted resources to actual resourses used these process of doing is called Variance Analysis. In Variance Analysis if varinces are positive than we try to find the reason and try to maintain that leval if variances are negetive than we should find reason and try to reduce the negitive variance so that our profit will increase.
Thus those offices or works units who look very imporatant would always gain priority for better budget consideration.
Get Answers For Free
Most questions answered within 1 hours.