Discuss the concept of budgeting as a key component of the planning process. How can budgets be used to control and monitor organizational performance?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Discuss the concept of budgeting as a key component of the planning process. How can budgets be used to control and monitor organizational performance?

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Step 1: Define the term budgeting in management:

Budgeting in management refers to the methodical process of planning, preparing, and controlling an association's  fiscal coffers and expenditures for a specific period,  generally a  financial time. It involves the creation of a comprehensive  fiscal plan that outlines anticipated earnings, charges, and allocations of  finances to  colorful conditioning,  systems, or departments within the association 

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