what are the importance of setting policy priorities for budgeting purposes

Expert Solution

Answer: Budgeting is also a policy document that how the resource allocation will be made for various functions based on the goals and objectives of a firm. It is prepared based on the priorities of the organizational strategy and allocates resources based on the hierarchy of priorities. Therefore without setting policy priorities for the budgeting purpose, it will not be possible to prepare an effective budget document. Setting of policy priorities is essential for preparing an effective budget that reflects the actual needs of the business. When the policy priorities are not set then it results in the improper allocation of resources and this can result in the failure of the company’s strategy. Wrong budgetary allocations hamper the achievement of the company’s goals and objectives. It results in the wastage of resources where core areas face shortages of resources and the non core activities get priority. Therefore setting policy priorities is essential for the success of the budgeting purposes. This helps in

1. Proper resource allocation

2. Effective achievement of goals and objectives

3. Help in meeting the expectations from the budget

4. Provide control

5. Develop effective budget strategy

keosha answered 1 month ago

In the local governmental budgeting process, who is responsible for setting funding priorities, building consensus, implementation,...

In the local governmental budgeting process, who is responsible for setting funding priorities, building consensus, implementation, and performance outcomes? What is the role of the legislative branch in this process?

discuss the purposes of budgeting process.

What are the fundamental purposes of public budgeting and how does public budgeting promote key aspects...

What are the fundamental purposes of public budgeting and how does public budgeting promote key aspects associated with U.S. deliberative democracy? List and briefly discuss key points associated with each of the stages associated with the public budget cycle. List and briefly discuss each of the major considerations given to adopting a revenue source known as the principles of taxation. please elaborate on answer 250-300 words

Importance of performance based budgeting and public budgeting

State what are the Roles of Communication for Work Purposes and explain their importance in the...

State what are the Roles of Communication for Work Purposes and explain their importance in the following Fields: a. Business b. Health c. Education d. Science

Describe the importance of the three types of budgeting? capital budgeting, flexible budgeting, and master budgeting.

What is fiscal policy and what are its purposes? What is the Laffer curve? What is...

What is fiscal policy and what are its purposes? What is the Laffer curve? What is the difference between discretionary fiscal policy and automatic fiscal policy? What is the government expenditure multiplier? What are some of the limitations of fiscal policy? Briey discuss them.

brifely discuss the main purposes of orgnaization foal setting

What are the two basic “tools” of Fiscal Policy, and what would be the ultimate purposes...

What are the two basic “tools” of Fiscal Policy, and what would be the ultimate purposes to justify using these tools? Discuss the controversy concerning which types of fiscal policies to use, including the arguments from the Keynesians as well as the Supply-side branch of economics, providing examples of each, evaluating the effectiveness in each example you provide.

What is capital budgeting? Discuss in details its financial importance and value.

Question