AFM102 Lecture Notes - Lecture 9: Teaching Hospital, Degree Of Difficulty, Employee Retention

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM102
• Professor: Catherine Wong

Document Summary

Used internally by management and may be used by parties external to the company. The basic framework of budgeting: budget a detailed plan for the future typically expressed in quantitative terms, forecasting, what are the needs in the immediate future, a few years out, and in the long term. Advantages of budgeting: communicate management"s plans to employees, better understanding of goals and objectives, what is happening, when is it happening, people take ownership, managers think about and plan for the future, not dealing with short-term issues. Companies who do not budget are not around for long: allocation of resources to parts of the organization where they are most needed and can be used most effectively. How we spend our money: uncover potential bottlenecks before they occur by identifying demands placed on key activities and processes. Everyone in the company is working towards overall goals.