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Student’s Name: Course: Instructor: Date: The Budgetary Process Introduction A budget is a set of intertwined strategies that quantitatively designate an entity’s probable future activities. It can be viewed as an administrative instrument that is responsible for monitoring and forecasting a firm’s necessities on alternative proceeds and expenditures of finance. The budgetary process provides a solid foundation and manifestation for the plans and actions of business. The system is expected to emphasize and enlarge the planning role at different levels of management through predicting and quantifying the future of a company in financial terms. Thus, the future financial needs of a company can only be achieved through the application of a budgetary process in the different operations it undertakes. Therefore, this paper shall explore the budget procedure and assess its key important stages for a medium sized manufacturing enterprise. The figure below describes how a medium-sized manufacturing enterprise can design its specifications so as to meet its budget goals. Financial Planning and Measurement Financial planning and measurement act as a road map, a guideline, and a reminder of organizational goals and the activities that need to be carried out to achieve short-term and long-term targets. The process lays possible costs for medium-sized manufacturing enterprises and seeks to address the avenues of managing those costs (Brüggen & Luft, 399). Financial planning helps enterprises to manage their cash flow processes that usually vary from one season to another. It takes the variations into account so as to avoid shortages in the future operations
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