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Operations and Resources

Operations and Resources A budget is a mechanism to plan for the firm’s operations and resources. The operations are reflected in revenues and expenses. This means that a budget should quantify the revenues to be realized from products/services and the expenses...

PLAN

PLAN The first ingredient of a budget is its plan. The term plan with reference to budgeting has a specific connotation. It includes two aspects which have a bearing on the operation, of an enterprise. One set of factors which determine a firm’s future...

BUDGET DEFINITION MEANING AND PURPOSE

BUDGET-DEFINITION MEANING AND PURPOSE A budget is defined as a comprehensive and coordinated plan, expressed in financial terms, for the operations and resources of an enterprise for some specified period in the future. According to this definition, the essential...

PLANS/BUDGETS

PLANS/BUDGETS The final step is the preparation of budgets/profit plans. Basically, budgeting is the periodic planning to implement the alternatives during a particular fiscal period, usually one year. It converts, in other words, goals and strategies into annual...

STRATEGIES

STRATEGIES The next step involves laying down the strategies. Strategies denote specific methods/courses of action to achieve the goals, for instance, promotion of sales through price reduction or aggressive advertisement, financial alternatives, and so on. [vfb...

GOALS

GOALS The second stage in the planning process is specifying the goals. The term goal, as an element in planning, represents targets, specific in quantitative terms, to he achieved in a specific period of time. The timing of introducing new products, purchase of new...