Saturday, April 2, 2011

What are Budgets? & Its Benefits

A budget is a quantitative expression of plans comprehensive and coordinated plan for the operations and resources of the firm.

Following are the benefits of making Budgets :


• Induce managements to think systematically about the future.
• Serve as a device for coordinating the complex operations of the business.
• Provide a medium for communicating the plans of the firm.
• Motivate managers at all levels to perform well.
• Serve as a standard against which the actual performance may be judged.



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