1. The CFO of your company comments, "I don't understand why other companies waste so much time by creating budgets. I set company goals, and everyone strives to meet them." Is this a valid approach? How would you respond to the CFO?© BrainMass Inc. brainmass.com June 3, 2020, 10:44 pm ad1c9bdddf
1. No it's not a valid approach. Company goals are set based on the budget prepared by the finance department. It's impossible to find out a way for the company operation. Companies prepare budget to get a direction for there operation. Budgeting also acts as a benchmark for the performance of the company. ...
This response compares company goals and budgets. It also explains depreciation and NPV analysis.