Budgeting – basic concepts

Budgeting – One of the management accounting tools, ensuring corporate goals. This is a process, which includes the development, Creation and approval of the budget, as well as its subsequent control, Budgeting – The result of planning the development of the company indicating the goals and directions of its activities and methods of using resources.

Budgeting – This is an assessment of measures taken in the plans. Its task is, to assign a specific work and the times of its implementation, responsible persons, and also control it. Between planning, Budgeting and control – This is bilateral relations. Due to the relationship, it is necessary to regularly review the assumptions made.

Budget – This is the financial plan of the enterprise, which is a method of distribution of resources, cash or natural units, prepared for a certain period or for the time of the project, approved and implemented by employees of various levels of management. Budgets are fixed (are developed for one level of activity) And flexible (are created on the basis of analysis of factors of cost variability for various levels of activity).