Budgeting

Topics: Zero-based budgeting, Budgets, Budget Pages: 2 (299 words) Published: June 22, 2013
What is Budgeting?

You will be familiar with “The Budget”
As the chancellor of the Exchequer outlines his plans for the Nigerian Economy to his student cousin He will indicate
** the spending plans of the
** how and where the government will raise revenue
This is no different from any other budget drawn up by a business. But first of all… what is a budget?
A budget is a statement of the financial position that a business hope to achieve.. This means it is a plan ,NOT a forcast.

What is budgeting?
Budgeting refers to a course of action based upon an estimate of assumed income and expenses. In layman terms, it is simply is a term is defined as a plan of operation where one reviews their income and expenditures, often in the effort to create a strategy in order to achieve some financial goal or goals within a specific period of time. Not all budgets are created or planned with the same methods.There are many types of budgeting. Personal budgeting is quite different from the budgeting performed by a corporation. There are personal budgets and business budgets

Personal budget
There are two common types of budgeting for private households.in one instance, the planner creates a budget via Envelop method. Whit this method,the planner will separate the necessary funds into different envelopes every month Business Budgets

Capital budgeting
Cash budgeting
NAME: ADETUWO AYOMIKUN
COURSE: ACC 303 (MANAGEMENT ACCOUNTING)
DEPARTMENT: ACCOUNTING
COLLEGE: COSOMAS
MATRIC NO: 010/855
TOPIC: BUDGETING, TYPES AND PROCEDURES
300 LEVEL
CALEB UNIVERSITY IMOTA LAGOS

Disadvantages of setting budgets

** Inaccurate and unrealistic budgets will be ignored
** it can restrict business activity, which may lose the firm business ** if budgets are imposed upon there is little incentive for them to stick to the targets
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