BUDGETS

BUDGETS

1. Planning and guidance

   • Requires managers to plan for the future and to anticipate financial problems before they occur.

2. Coordination

   • Enables managers to control the firm´smoney, instead of the money controlling the firm.

3. Control

   • Just as people cannot continually live beyond their means.

4. Motivational

   • Responsability and employee participation can motivate workers

5. Setting Budgets

   • - The available finance - Historical Data - Organizational objetives - Benchmarking - Negotiations

6. Limitations of budgeting

   • Despote te potencial benefits of budgets

7. An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals. Read more

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