Characteristics of budgets
Not what you're looking for?
You recently attended a workshop on budgeting and overheard the following comments as you walked to the refreshment table:
1. "Budgets are the same regardless of the size of an organization or management's role in the budgeting process."
2. "Budgets can include financial or non financial data. In our Organization, we plan the number of hours to be worked and the number of customer contacts we want our salespeople to make."
3. "All Budgets are complicated. You have to be an expert to prepare one."
4. "Budgets don't need to be highly accurate. No one in our company stays within a budget anyway."
Do you agree or disagree with each of comment? Explain your answer (short)
Purchase this Solution
Solution Summary
The solution discusses the given characteristics of budgets
Solution Preview
1. Disagree. Budgets are a function of size and the management's role in the budgeting process. A large organization with many divisions would prepare budgets by the division and then consolidate while a small organization would straight away make the budget. In the same way the budget would differ based on management's role. If management delegates the authority to make the budget, the budget would be participative and would reflect what can be achieved since everybody has a stake in the budget. If the management prepares the ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Introduction to Finance
This quiz test introductory finance topics.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.