Download Essay Get Full Essay Get access to this section to get all the help you need with your essay and educational goals. The budget process is used to create the United States federal budget. The federal budget is divided into two categories mandatory and discretionary.
Role of budgeting in the planning, control, and resource allocation process Introduction It is all in the game if the budget allows the The budgeting proccess essay of an organization to be done.
Every financial activity that a firm undergoes has to be decided with respect to the budget that has been planned with respect to the same. Under the conditions it is very important to know what a budget actually means. A budget is formal document that states the monetary capacity of a firm to plan, control and allocate its resources accordingly.
In other words it is the presence of money that is converted to currency as and when it is required by the firm. IT is very important to know the company's earnings while deciding the budget of a particular firm.
The reason for the same is that it is this guarantee of income based on which a firm can plan its planning and the events that follow. So, the further processes of monitoring and resource allocation would depend largely on what the budget fixes for them with respect to the earnings that the firm can make in the near future.
Before the financial activities are changed from what had been planned earlier, it is required to make the necessary changes in the budget so as to ascertain whether the changes are feasible by the firm or not. As for example, if a company thinks of up-stretching in the market, it would have to check if the allocated resources as per as the budget allows it to do so currently or in the required period or not.
Southgate, The above graph shows how competitive Abu Dhabi is as compared to the other cities of the country. This is because of a well-planned budget of the country.
Budget and its Role in Planning One can see the importance of budgeting in planning from the examples of some of the top real estate structures that have been constructed in UAE in the past.
Some of them are the Arabian Ranches in the top cities of the country, the construction of Address Hotel and some similar stature buildings. The amount of planning required in the construction of these structures went to a high degree. For example, if the budget required about million AED for the construction of any of the companies, it would have to plan the financing from sources like debts and equity.
It is this planning of finding the leverage of the firm that the budget helps one to do. Accordingly one can take the respective loans in order to complete a project. If the budget allows the risk associated with raising money from the debt market, it can be taken; if it doesn't then the company would have to look for certain investors who could become shareholders of the company.
There are also other areas where planning has been done on the basis of the budget planned. Consider the telecommunication giant, Etisalat for example.
The company had serious needs to mend its ways so as to compete with the other entrants into the market. This could only be possible if the budget of the company allowed it to do so. The reason for the same is that if a country switches over from marketing strategy to another, it would first have to check its budget before making an analysis of the risk-return trade off.
Planning of the tourism department of the country is also highly based on the budget sanctioned to them.Role of budgeting in the planning, control, and resource allocation process Introduction. It is all in the game if the budget allows the projects of an organization to be done.
Accounting Essay words - 4 pages INTRODUCTION Budgeting is a process of creating a plan to spend your money and it is an estimation of the cash inflows and outflows for a business over a period of time.
It is an important component of financial success and to ensure that companies are spending less than their operating capital and plan for short- and long-term.
Budgeting Process Budgets are often met with much hesitation. Often times, managers feel that the process is often too long and really does not help them run their departments or business.
Let¡¦s explore the various stages of the budgeting process and evaluate their effectiveness. Governmental Budgeting Process Essay. Governmental Budgeting Process Budgeting in the public sector is typically performed with the culmination of many departments.
It combines planning and budgeting to assist individual departments in developing their budget to be consistent with specific objectives as well as strategic goals.
Capital budgeting is one of the most important financing tools used to examine expenditures and future projects in the capital spending and to budget for projects and all other analysis of spending for the future.
Capital Budgeting Process Organizations that decide to issue bonds generally go through a series of steps. Discuss the six steps. In order for an organization .