Design/Budget Elements of Proposal Paper

Budget Proposals

Introduction

Budget is a plan of action to meet a target, expressed in financial terms and values ??that must be fulfilled at a certain time and under certain conditions laid down; this concept is applied to each responsibility center of the organization. The budget is the annual development tool companies or institutions whose plans and programs are formulated for one year. That makes the budget should be adhered to him, and you cannot change if the customer accepts the service. The budget may be charged or not, should not be accepted. The budget can be considered a classic part of the administrative cycle consisting of planning, action and control (or, more specifically, as part of a total management system.

Discussion

Fixed budget which is also called a static budget which consists of a single plan and make reservations for changes that may occur during the period for which it has developed. It is based primarily on estimates of the forecasts are correct. For a country whose economy is not stable, fixed budgets are not the most recommended, unless they cover a relatively short period of time. Sometimes called static budget, consists of a single plan and make reservations for changes that may occur during the period for which it is made. It is based primarily on estimates of the forecasts are correct (www.cs.gmu.edu). 

For example:

If the budget presented is for a fixed budget. It makes an estimate of quarterly and annual production of the garment factory and also in sales for those periods. There is no provision to consider possible changes in the production figures or estimates of sales as a result of changes in the economic situation of rising prices of raw materials, etc i.e. considered that there will be no change.

For a country whose economy is not stable, fixed budgets are not the most recommended, unless they cover a relatively short period of time. Another example:

The weavers can make a fixed budget for a quarter; it is quite likely that during this period do not raise the price of wool.

However, although we can have some assurance as to the cost of sweaters, selling them is more difficult. The demand for this article is a variable that the weavers do not control and which may change quite serious. It is likely that there is increased demand during the autumn and winter than in spring and summer. It is also subject to purchase hang with the women in the population, if hard times, deleted or postponed their purchase. Therefore, an estimation of 100 sweaters sold each month is risky, because the reasons underlying this claim are more difficult to estimate and can draw conclusion. This conclude that fixed budgets are more suitable for operations in that the items involved do not have many variations, such as the costs of certain raw materials whose prices are fixed, wages and salaries which are assumed to remain constant during the duration of the collective agreement. They can also be used when forecasting the futures of the company are highly ...