Flashcards
Why Budget?
Cards in this deck (6)
- 1WHY BUDGET?An organisation will create a budget to find a link in its current position and to where the company would lie to be, say in 12 months.
- 2THE BUDGET COMPELS PLANNINGThe organisation can ensure that plans are achievable, and to make sure resources are available at the right time.
- 3THE BUDGET COMMUNICATES AND CO-ORDINATESAll relevant Managers work towards the same ending, all play a part in achieving the budget and raise any concerns if the resources are not achievable.
- 4THE BUDGET CAN BE USED TO AUTHORISEOnce a budget is agreed, it can become the primary tool to stick to a particular course of action
- 5THE BUDGET CAN BE USED TO MONITOR AND CONTROLManagement monitor the actual results, make changes if necessary
- 6THE BUDGET CAN BE USED TO MOTIVATEThere may be an incentive for employees to reach goals, ie bonus. So it can make them work a little harder to reach the budget
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- AAT Level 4 Budgeting Flashcards on Why Budget?, created by lizbielby on 17/10/2015.
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- lizbielby
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