ACCT 204 Lecture Notes - Lecture 9: Indian Railways, Spreadsheet, Job Satisfaction
Document Summary
Importance of budgets: the process of budget preparation is sometimes seen as painful. Seen as imposing constraints and establishing goals that are hard to meet. It is imperative that organizations carefully plan their financial affairs to achieve financial success: a budget is a detailed financial plan that quantifies future expectations and action is relative to acquiring and using resources. Budgeting advantages: a plan or budget provides the following: Expected sales are translated into a schedule of expected daily electricity production. Staffing plans are developed that optimize the number of employees and their work times. A line of credit is set up with a bank to cover periods during which cash might be tight. Benefits of budgeting: translates general plans into specific, action-oriented goals and objectives, provides a mechanism for identifying and focusing on departures from the plan. Units and managers are held accountable for transactions under their direct influence and control.
