Lecture 2- Budgeting (1)

One function of budgets is [blank_start]planning annual operations[blank_end]

Another function of budgets is [blank_start]coordinating[blank_end] the [blank_start]activities[blank_end] of the various parts of the [blank_start]organisation[blank_end] & ensuring that the parts are in [blank_start]harmony[blank_end] with each other

Third function of budgets is [blank_start]communicating plans[blank_end] to the various [blank_start]responsibility centre managers[blank_end]

Fourth function of budgets is [blank_start]motivating managers[blank_end] to strive to [blank_start]achieve[blank_end] the [blank_start]organisational goals[blank_end]

Fifth function of budgets is [blank_start]controlling activities[blank_end]

Sixth function of budgets is [blank_start]evaluating[blank_end] the [blank_start]performance[blank_end] of [blank_start]managers[blank_end]

First stage of budgeting process is [blank_start]communicating details[blank_end] of budget policy & [blank_start]guidelines[blank_end] to those people [blank_start]responsible[blank_end] for [blank_start]preparation[blank_end] of budgets

Second stage of budgeting process is [blank_start]determining factor[blank_end] that [blank_start]restricts output[blank_end]

Third stage of budgeting process is [blank_start]preparation[blank_end] of [blank_start]sales budget[blank_end]

Fourth stage of budgeting process is [blank_start]initial preparation[blank_end] of [blank_start]various budgets[blank_end]

Fifth stage of budgeting process is [blank_start]negotiation[blank_end] of [blank_start]budgets[blank_end] with [blank_start]superiors[blank_end]

Sixth stage of budgeting process is [blank_start]coordination[blank_end] & [blank_start]review[blank_end] of [blank_start]budgets[blank_end]

Seventh stage of budgeting process is [blank_start]final acceptance[blank_end] of [blank_start]budgets[blank_end]

Last stage of budgeting process is [blank_start]ongoing review[blank_end] of [blank_start]budgets[blank_end]

Top down budgeting process- Budgeting process in which [blank_start]objectives[blank_end] are imposed by [blank_start]top managers[blank_end]. [blank_start]Functional managers[blank_end] receive these [blank_start]objectives[blank_end]

Bottom up budgeting process- Budgeting process in which [blank_start]functional managers[blank_end] propose [blank_start]budget[blank_end] & this is [blank_start]accepted[blank_end] by [blank_start]top managers[blank_end]. This is [blank_start]participative[blank_end] approach

Negotiated (parallel) budgeting process- Budgeting process in which there is [blank_start]mixture[blank_end] of [blank_start]top down[blank_end] & [blank_start]bottom up[blank_end] approach