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Essay text:
What are the benefits of budgeting?
1. Requires all levels of management to plan ahead.
2. Provides definite objectives for evaluating performance at each level of responsibility.
3. Creates an early warning system for potential problems (control).
4. Motivates personnel throughout the organization to meet planned objectives.
5. Facilities coordination of activities within the organization.
6. Results in greater management awareness of entity’s overall operations and their relationship to external factors such as the economy.
3. How does budgeting differ from long-range planning?
Budget more detail oriented and focused on short term goals – (vs...
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