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Budgeting - Coggle Diagram
Budgeting
The budgeting process
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Next the budget should be further broken down (training budget, a health and safety budget etc)
The experience and knowledge gained from setting one period’s budgets should be applied to the setting of the following period’s budgets
Set production, marketing and financial budgets
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Problems with budgets
If budgets are inflexible, then changes in the market or other conditions may not be met by appropriate changes in the budget
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Those excluded from the budgeting process may not be committed to the budgets and may feel demotivated
Budgetary control
The basis of budgetary control is variance analysis. A variance is any unplanned change from the budgeted figure.
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Budgeting
A budget is a financial plan of action normally covering a specific time period. A budget will describe expected levels of expenditure and revenues of a business.
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Zero budgeting
Zero budgeting involves managers starting with a clean sheet and they have to justify all expenditure made
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