CHAPTER 4
Budgeting
Budgeting
A budget is a document that translates a group’s or organizations strategic and operational plans into the expected resources required and returns anticipated over a certain period.
A budget is “[a] quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows” (CIMA Official Terminology, 2005).
Why Budgets Matter
A budget functions as financial blueprint or action plan that a group or organization creates to ensure it has enough resources to achieve its goals. The budget also helps ensure that achieving those goals generates the desired benefits.
Corporate decisions are all about the choice ...
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