Budgets are the driving force behind all organizations. Whether a manufacturing organization, or a service organization such as a medical or public accounting firm, budgets are used not only for planning purposes but also for performance monitoring and evaluation of areas within an organization.
More than likely, you are often required to work with budgets within your organization. Using the module reading online library resources, research budgets including multiple budgets.
Respond to the following:
- Describe in detail the budgets that you work with.
- In your description, what was the objective of the budget i.e., to motivate employees or control costs? (A budget could have more than one objective.) Was the use of the budget successful in achieving the objective?
- Based on the effectiveness of the budget, what recommendations would you suggest to improve the communication and/or utilization of the budget(s)?
- Assume your organization has multiple budgets and you are to work with these. Explain how these budgets should be linked together.
Give reasons and examples in support of your responses.