Question

This chapter emphasizes the importance of budgeting and planning for expenses. Discuss the operating budgeting and the one you think is the most important.

Answer 1

Meaning of budgeting and planning expense :

Budgeting is the process for the prepare of financial statement for the future time period. Bugeting is the process of making the budget for expense. budgeting is the process of making plan to how spent the money of business for achieving target. bugeting and planning expense fixed the criteria of expense for the future.It is the estimation of future expense according to past observation. budget is prepare for a fixed time period. budgeting is an important planning and forcasting proce for a given time period. budgeting and planning expense including both operating expense and capital expense.it

Meaning of Operating budgeting

Operating budget is focus on the current expense. the focus of an operating budget is to ensure there are funds to maintain the continue business operation. operating budget is mostly prepare for short time period.

Which one is most important

both budget is important but budgeting and planning for expense include both type expense operation budget as well as capital expense.