buss 2

using budgets- a budget is a financial plan for the future concerning the revenues and costs of a business over a given period of time.

why are budgets used:

• established priorities and sets out targets
• provides direction
• assign responsibilities
• allocate resources
• delegate without loss of control
• motivate staff
• monitor performance
• contropl revenues and costs
• communicate

Historical budgeting:

• using last years fingures as a basis for the budget
• realist and based on actual results
• circumstances may have changed
• doesnt encourage efficiency

zero-based budgeting :

• budgeting costs and revenues are set at zero
• budget is based on a new proposals for sales and…