Budgeting

Budgeting can be defined in several ways on a financial and non-financial basis. The simplest of the budgeting definition is to allocate resources and compare the results against the allocations. The traditional line-item budgeting focuses on cost items and reducing the cost per item basis. Modern budgeting requirements call for activity-based resource allocations. One of […]

Budgeting is the process of making a plan or forecast for the future of a business. Budgeting is an important part of the management and cost accounting of a business. The budgeting process of a business consists of forecasting its incomes and expenses. Once these incomes and expenses are determined, the forecasted profits of the

In this article, we will cover the budgetary slack. This includes the definition, causes, the Repercussion of budgetary slack and how to control budgetary slack. First, let’s go through the overview together before going further detail. Typically, all businesses prepare budgets of various types; budgets are an estimation of future expenses, revenue, cash flows, etc.

Introduction Budgeting is a key performance management tool and play a vital role in planning, forecasting, performance management and control measure. The most common method of producing a budget is simply printing out the financial statements and make necessary adjustments on historical expenses to account for the inflation as well as adding the project revenues

Introduction All businesses prepare budgets; they provide the management useful tools for planning, forecasting, controls, and performance evaluations. The traditional approach towards budgeting is to analyze the past year’s budgets, make adjustments, and prepare the next year’s budgets. The revolutions of new business trends demand robust and flexible approaches. Stakeholders are demanding for extra scrutiny

Introduction In management accounting, budgeting is a vital part of planning, performance management, and control measures. “A budget is a quantitative plan prepared for a specific time period. It is normally prepared in financial terms and for a time period of one year”. In different types of budgeting techniques, Activity Based Budgeting is defined as:

Introduction Budgeting is a key performance management tool; it sets benchmarks in the operations. It provides valuable analysis for target sets and variance in the results. Different budgeting techniques serve different purposes, for instance; Beyond Budgeting vs Traditional Budgeting. The budgeting process for a company sets an environment of quality management starting from planning, communication,

Introduction Budgeting and forecasting are two important tools for management in performance planning and measurement. Both of these techniques work similarly, as they observe the historic data, apply changes, and forecast a plan of action for future activities for the management. Uncertainty in macroeconomics or volatility in microeconomics both call for a robust approach, which

Introduction All organizations work in hierarchical set up, approached differently according to each one’s needs. The top-down and bottom-up approach in budgeting are two approaches of decision making in an organization. These approaches can apply to any planning and decision making process e.g. forecasting, budgeting, and financial decision making. The  choice between these two approaches