ACCT 211 Lecture Notes - Lecture 5: Budget
Document Summary
An important management objective in large companies is to ensure that activities of all departments contribute to meeting the company"s overall goals. The budgeting process coordinates the activities of various departments to meet the company"s overall goals. Budget-is a formal statement of a company"s future plans. It is usually expressed in monetary terms because the economic or financial aspects of the business are the primary factors driving management"s decisions. All managers should be involved in budgeting, which is the process of planning future business actions and expressing them as formal plans. Managers who participate in a budgeting process increase the likelihood of both personal and company success. The focus on the future opportunities or threats. Requires managers to evaluate operations against some norm. helps identify problems (benchmarking). This process can have both positive impacts on tm development and performance, and negative impact on tm ethics. Performance evaluations must allow the afftected employees to explain the reasons for apparent performance deficiencies.
