Budgeting

BUDGETING Budgeting is a word that is being very common in almost all the fields of pay, accounting and management today. It is the imaginativeness that every individual in the field of accounting and finance has to be well advised ab erupt it and its application in the pr act uponical terms. Although budgeting undersurface be done in galore(postnominal) a(prenominal) ways in different fields and argonas but the main(a) meaning of this term remains the same that is making plans out front hand. This term has been derived from a English word Bougett which meant a dismission or a sack in which the text file were carried onward the budget was to be pronounced by the ministry in the earlier terms. And from then onwards this sack was itself called budget as it took the stool of a paper, and was used for declaration of budget. Budget can be defined as the statement which financial in personality and prepared before the beginning of a stain block in order to have a intel lect of how and to what aim to go in the future, in other dustup determine the future course of activities. So budget is a bode and budgeting is the process of performing that forecast in a straightlaced manner.

The importance of budgeting is that it helps to chink the financial administration of a particular activity for which it is done before its performance; it for the most part gives an idea of how it should be done to achieve the desired results. several(prenominal) of the major(ip) functions of budgeting are that it helps to create accountability for managers and help to discover the act and functions of various services in an organization. The budgets that are prepared a ttain different phases like Line Item budget! s, Performance Budgets, Programmed Budgets and finish the Zero Based Budgets. So in order to control these activities budgeting has to be done and emphasized upon. As we are conscious(predicate) that all organizations need plan and control and budgeting is the centre of this activities. Theses budgets are used as financial tool that helps in preparedness and controlling costs and also most...If you want to get a full essay, order it on our website: OrderEssay.net

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