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How can a company go from point A to point B? According to Leading Edge Alliance, a budget is like a roadmap for business growth or driving directions (2007). What does budgeting entail?
The Process
Budgeting is the process of: identifying, gathering, summarizing and communicating, financial and non-financial information about the company?¦s activities for a set period.
During the identifying phase, activities consistent with corporate strategy are identified by various departments such as: production, marketing & research and management. Once identified, activities are evaluated and screened by estimating how they affect future firm cash flows and hence, the firm's value (Peterson & Fabozzi, 2002)...
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