Day: April 15, 2016
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Preparing a Budget
Starting point – identify key factor restricting organisations growth such as sales, human resources, physical space. All other activities determined by constraining factor.
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The Benefits of Budgets
Various potential benefits of budgets & budgeting such as: coordinating business and service operations plan ahead – often reveals need for action which may have been otherwise forgotten learn – effective budgeting systems contain feedback loops motivating managers budgetary targets focus attention Performance judged against targets – must be achievable, realistic, negotiated rather than imposed.…