Question

Budgeting can be costly, lengthy, and even lead to some pretty dysfunctional employee behavior, so why budget? Do the advantages really outweigh the disadvantages? Be specific. How does your company employ the budgeting process?

At least 100 words.

Answer 1

Answer: Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. Unless you do not know what to produce in how much quantity, you will not be able to optimize your profit with the available resources. Budgeting helps to determine where to spend and how much, to optimize profit.

The budget has far more advantages than disadvantages. The budget is the best way to plan things. Planning takes time but it saves you more time.

The budgeting process employs the help of keep checking on. It is done in a phased manner mention bellow-

1- Estimate of Expenditure and Revenue this helps to know how much you have and where to send, to optimize profit.

2- Manage the deficit- Plan for things you require and available in less and try to create an alternative.

3- Update Budget Assumption created earlier past experiences should be incorporated in the budget to make it more practicable

4- Create and Update Budget Model as per the requirement.