Question

describe and critique the budget processes that are used for that organization. budgeting , forecasting, and compare

Answer 1

Budgeting, preparation, and forecasting (BP&F) is a three-step strategic planning method to identify and explain the long- and short-term financial priorities of an organization. The method is normally conducted by the finance department of an company under the supervision of the Chief Financial Officer ( CFO).

Budgeting details how the overall program will be implemented month by month, usually including income and expenditure forecasts and projected cash flow and debt reduction. At the beginning of a calendar or fiscal year, companies often set their budgets and leave room for adjustment as revenues grow or decline. Budgets for estimating the variances or errors between the two are contrasted with current financial statements.

Forecasting uses cumulative historical data and industry trends to predict future months or years of financial performance. The projections can be modified when new information becomes available to help management teams predict outcomes based on past knowledge. Unlike budgeting , financial forecasting does not analyze the difference between projections and actual performance.

The form, quantity, and price of the goods and services provided by governments are often not subject to supply and demand market forces. Thus, in the absence of a competitive market, enacting and adhering to the budget imposes constraints. These goods and services that governments provide are generally deemed critical to the public interest and welfare. The complexity and nature of an organization's activities make comprehensive financial planning necessary for effective decision-making. The financial planning process is essential to the expression of citizens' preferences and is the way to consensus among people, members of the board of governors