Budgeting - A Budget is a plan expressed in financial terms.

BUDGETING A Budget is a plan expressed in financial terms. C.I.M.A. defines a budget as 'A plan quantified in monetary terms, prepared prior to a defined period of time... to attain a given objective', A budget is normally for a relatively short period, e.g. 1 year. Purposes of Budgeting A number of purposes of budgeting have been identified. They include: 1.<Tab/>Planning. 2.<Tab/>Resource …

…of performances in relation to responsibilities. ii.<Tab/>Prompt and accurate reporting of results. iii.<Tab/>The ability to provide more detailed information and advice on request. 6.<Tab/>Budgets should be administered in a flexible manner. Significant changes in circumstances should lead to changes in plan. Rigid adherence to budgets which are inappropriate for current conditions leads to loss of credibility and effectiveness.