Annual Budget



Annual Budget Assignment

Reflection

The main challenge that I faced in creating this budget was to calculate the actual amount of income and expenses. Moreover, decision of deciding what elements should be considered in the preparation of budget was a challenge for me. The preparation of this budget helps me to understand the importance of budgets. It helps me understand that a budget is a plan of action aimed at fulfilling a target, expressed in values and financial terms that must be satisfied in a given time and under certain conditions laid down; this concept is applied to each center responsible for the organization.

A budget is an intermittent measure utilized by governments, corporations, or individuals to quantify the divergence in the middle of budgeted and actual figures for an exact accounting classification are called budgetary variance. A favorable budget variance points to positive variances or gains; an unfavorable budget variance portrays negative variance, implication misfortunes, and deficiencies. Budget variances happen since forecasters are unable to expect the destiny with complete precision. As an effect, some variance might as well be looked for when budgets are made.

The main function of the budget relates to the control of the financial organization. I learned that budgets are useful in most organizations as Utilitarian's (companies business), non-utilitarian (government agencies), large (multinational conglomerates), and small enterprises Budgets are important because they help minimize the risk in the operations of the organization. Through the budget remains the operational plan of the company in some limits reasonable. Control and management of price variations is achieved in various ways. They are price gouging, cost-effective acquisition of goods; receive discounts, cost-effective methods of transportation. Price deviations are used to improve methods of forecasting and decision-making in relation to suppliers and transport organizations. It may be that the excess of the ...