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
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
NAME: ADETUWO AYOMIKUN
COURSE: ACC 303 (MANAGEMENT ACCOUNTING)
MATRIC NO: 010/855
TOPIC: BUDGETING, TYPES AND PROCEDURES
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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