The budget is a very useful tool and can serve as a tool in a number of areas: planning, control, evaluation, motivation, communication, identifying future problems. To use the budget as a communication and motivation tool, the top management should be involved in the whole budgeting process, not only in the approval process.
The budget is a realistic plan for the future expressed in quantitative terms. In other words budgeting is a part of overall planning process.
The budget is a very useful tool and can serve as a tool in a number of areas: planning, control, evaluation, motivation, communication, identifying future problems. To use the budget as a communication and motivational tool, top management should be involved in budgeting process even though they lack detailed knowledge of the daily operations.
The budget is a very useful tool and can serve as a tool in a number of areas: planning, control, evaluation, motivation, communication, identifying future problems. To use the budget as a communication and motivational tool top management should be involved in budgeting process.
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