Budgeting

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BUDGETING 3.1 Explain in detail the purpose and the nature of the budgeting process for an organization like Ramona (PVT) Ltd

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Transcript of Budgeting

Page 1: Budgeting

BUDGETING 3.1 Explain in detail the purpose and the nature of the budgeting process for an organization like Ramona (PVT) Ltd

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What is budgeting

Predetermine estimate for future period in total terms

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Why budgetingPlanning

Controlling

Communication and coordination

Motivation

Performance evaluation

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Planning

functional cash master

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controlling

feed back feed forward

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Communication and coordination

motivation

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performance evaluation

Financial ratio balance scorecard benchmarking

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Problems with budgetingIn an uncertain environment

For non profit organization

Beyond budgeting

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Budgeting 3.2

assess different budgeting method and its need for Ramona (PVT) Ltd

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How budgetingMain approachesTop downBottom up

Alternative approachesTraditionalRollingZero based

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I will recommend rolling budget for Ramona (PVT) Ltd


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