ACCT 1B Lecture Notes - Lecture 14: Budget, Indian Railways
16 Jun 2020
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Document Summary
The budgeting process: usually start process several months before the end of the current year. What is industry and what is company"s % of market. In many companies use budget committed responsibility for coordinating the preparation of the budget. Budget committee is review board where managers and supervisors can defend their budget goals. Once differences are worked out and budget is modified, it is put in final form, approved and distributed. Budgeting and human behavior: budgets affect human behavior - on one hand can be motivating, on the other can have negative effect. The difference has to do with the way budgets are developed and administered: developing the budget: each level of management should participate. The overall objective is to reach agreement on budget that is fair and achievable. If perceived as unfair and unrealistic, people will become discouraged and uncommitted. It takes more time and it can foster budgetary slack.
