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Chapter 7: Budgeting-Part 1
The purpose of budgeting to assist management in planning and controlling the resources of their organisation, and enhancing company’s decision making. A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Companies, governments, families and other organizations use it to express strategic plans of activities or events in measurable terms.
By the end of this lesson, you should be able to,
- Explain the importance of budget in organization;
- Describe the key steps of budgeting process;
- Explain key functions of budget.