-        Financial plan of resources needed to carry out tasks & meet financial goals

(a)  

-        Quantitative expression of goals org wish to achieve & cost of attaining goals

(a)  

-        Act of preparing budget

-        Help managers identify current & potential bottleneck in ope. & use critical resources as solution for bottlenecks

(a)  

use of budgets to control firm’s activities

(a)  

-        Path it used to attain LT goals & mission

-        Starting point of preparing plans & budgets

(a)  

examining these would help identify opportunities, limitations, & thraeats

this includes -        Competition

-        Technical, economic political, regulatory, social & environmental factors

(a)  

matching strength w/ identified opportunities, resources & threats enable firm to form strategy

this factors includes -        Financial strength

-        Managerial talent & expertise

-        Functional structure

-        Organizational culture

(a)  

Strategy provides framework or parameter which (a)   is developed

identifies required actions for 5-10 yr period to attain goals set in strategies

(a)  

Long range planning entails (a)   where it is Process of evaluating major projects

-        prepared to bring org capabilities in line with needs of LT range plan & LT forecast

(a)  

– result of capital investments made in prior budgeting period

(a)  

-        Goals for coming period (month, quarter, yr, or any time desired for planning purposes)

-        Determine based on strategic goals, LT objectives & plans, Ope. Results of past peiods, expected future ope & environmental factors including economic industry & marketing conditions

(a)  

-        top management ensures that budget guidelines are followed thru (a)   which will help discourage low-level manager play budget gams (budgets w/ easy, target & add stock to a budget)

-        Represents different functional area (marketing, finance, production, & administration)

-        Oversee preparation & administration of budget

-        Decide how budgets shall be prepared, passes on final budget, settles disputes in one segment of business& another when diff. opinion arise, receives budget reports & make policy decisions w/ respect to budget revision & other problems of budget administration

(a)  

-        he May be selected as head of committee due to

1. 1.      (a)   position is independent from ope parts of organization

2. 2. may skills and experience in setting up budget

3. -        Act as coordinator in budgeting operation

   -        Recommends how budgets are prepared, assemble the budget, prepares periodic report showing variance of actual & budgeted result, interprets variance, offer suggestion for improvement

-        must be long enough to show effect of managerial policies & short enough para estimates are accurate

-        different budget for different time spans

(a)  

budget

-        overall financial & operating plan for coming fiscal period & coordinated program to achieve plan

-        prepared on quarterly or annual basis

(a)  

budget

-        long range budgets

-        incorporate plans for major expenditures for plant & equipment or addition of product line

-        covers 5-10 yrs

(a)  

budget

-        segments of master budget which is responsibility of specific manager prepared monthly

(a)  

-    budget    prepared day to day or monthly basis

(a)  

-        Prepared based on initial budget guidelines

-        Factors to consider by budget unit (internal & external factors)

(a)  

-        Examines initial budget proposal to determine whether the proposal are within budget guidelines

-        Checks whether budget goals can reasonably attained & in line w/ goals of budget units @ next level up & budgeted operations are consistent w/ budgeted activities of another budget unit

(a)  

-       he Reviews & give final approval to budget

(a)  

-        Approves entire budget & submits budget to BOD

(a)  

-        Process of preparing master budget

(a)