Budgeting and Forecasting

In the article “All Together Now” in the Feb. 1, 1998 issue of CFO Magazine, the author, Cathy Lazere, explains why budgeting and forecasting must be linked with planning and performance. Most managers despise the thought of budgeting and forecasting because the processes are so time consuming. The two are seen by management as a way to appease the people at the executive levels. The main problem is that budgeting and forecasting are not usually linked with …

…be changed. The rest of the article provides examples of each step listed above through companies such as Avon and Texaco. This article relates to managerial accounting in a number of ways. Managers must deal with the four aspects dealt with in this article. Managers deal with budgeting, forecasting, planning, and performance. These are important aspects of almost all managerial positions, and this article shows that there should be a relationship between all of them.