a budget is a plan that is drawn up setting out revenues or costs for a given period of time. most budgets are drawn up for the financial year & are usually broken down into shorter time periods as months. the differences between the two figures are known as variances and can be either adverse or favourable. budgets are a useful tool which help an organisation become more effective.
- it gives managers greater control - they can make decisions based on variances analysis
- it enables forward planning and the setting of…