ADMS 2510 Lecture 7: budgeting ch10

• School: York University
• Department: Administrative Studies
• Course: ADMS 2510

Document Summary

Budgeting is the process of identifying, gathering, summarizing, and communicating financial and nonfinancial information about an organization"s future activities. It is an essential part of the continuous planning that an organization must do to accomplish its long-term goals. The budgeting process provides managers of all types of organizations including for-profit organizations and not-for-profit organizations the opportunity to match their organizational goals with the resources necessary to accomplish those goals. Budgets plans of action based on forecasted transactions, activities, and events are synonymous with managing an organization. They are essential to accomplishing the goals articulated in an organization"s strategic plan. They are used to communicate information, coordinate activities and resource usage, motivate employees, and evaluate performance. For example, a board of directors may use budgets to determine managers" areas of responsibility and to measure managers" performance in those areas. Long-term goals strategic planning is the process by which management establishes an organization"s long-term goals.