Five ways on how budgets can be and are used by management to evaluate performance in...

Five ways on how budgets can be and are used by management to evaluate performance in a business organization.

Expert Solution

By mean of a good budgeting system means to reach the strategic goals it will help A company or organization by allowing its management team to plan all and also to control the major categories of activity, like as financial options, expenses, revenue.
Planning main goal is to develop future objectives.
On the other hand in controlling we monitoring the planning objectives that have been put into place.
Communication :-During budgeting the whole process is the formal method to discuss or communicate a company’s plans to its stakeholders, such as, department managers or executive etc.
Planning:- To Preparing a budget requires managers to evaluate on various aspects

Various assumptions that are used to prepare the budget :-

Short-term financial goals
Long term financial goals

6.Evaluation:- Budgets are early alerts and they f forecast when they compared with the real results.

Note :- Please give your valuable feedback.

Thanks.

Rahul Sunny answered 1 year ago

Evaluate the ways that sustainability can improve firm performance. What are the ways that a company...

Evaluate the ways that sustainability can improve firm performance. What are the ways that a company can benefit from being more sustainable? (Please include more than lowering costs/expenses)

How to evaluate the performance university?? In term of management.

How are the ways in which organizations choose to measure and evaluate the performance of their...

How are the ways in which organizations choose to measure and evaluate the performance of their segments tied to how managers of those segments get evaluated? What are the ways those approaches can fairly evaluate managers? How can those approaches sometimes unfairly evaluate managers? Can people "game" this system? If so, how? What can be done to ensure both accurate segment performance evaluation and fair manager evaluation?

1. Explain how a budget can be used to evaluate a manager’s performance and provide incentives....

1. Explain how a budget can be used to evaluate a manager’s performance and provide incentives. 2. Distinguish between operating budgets and financial budgets. Explain this within the context of formulating the annual budget for a university.

Budgets are useful tools to help manage a businesses' performance and can be used to guide...

Budgets are useful tools to help manage a businesses' performance and can be used to guide important operating decisions, but are their risks to being too focused on the meeting financial budgets? Are their other performance measurements that a manager should consider in the decision making process? Answer the following questions: In your opinion, what do you consider the most important reason for a business to use a budget? Why? Are their any risks to using only a budget to...

How can acquisitions inflate cash flow and distort the metrics used to evaluate performance? Explain why...

How can acquisitions inflate cash flow and distort the metrics used to evaluate performance? Explain why and note the GAAP that is involved.

Performance measures can be used to evaluate healthcare performance. Define the four(structure measure, process measure, outcome...

Performance measures can be used to evaluate healthcare performance. Define the four(structure measure, process measure, outcome measure, patient experience measure) categories of measures and give a hospital example of each concept. Required one page answer.Please provide correct answer

Question