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Strategy and examples of the budgeting process.

What are some useful examples of budgeting other than tracking income/expenses?

What is meant by strategy? What types of questions would one ask when designing a strategy?

How does strategy relate to the budgeting process?

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What are some useful examples of budgeting other than tracking income/expenses?

Budgeting is all about planning ahead. The tracking of income and expense is done in the historical accounting records, not in the budget process. Of course, the 'budget to actual' comparison is an important by-product of the budgeting process, but mostly it serves as a tool to evaluate the past budget and to makes changes as needed in the future budget.

That comparison can also be used to judge the managers results. In the budget process, management must be involved initially because then they can be held accountable for the results.

Budgeting can be a way to determine the effects of contemplated changes. The budget can show, for example, ...

Solution Summary

The 484 word response provides a good basis for understanding the types of questions to ask in designing a strategy. Included are four short paragraphs explaining the goals of budgeting.

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