Budget What is, importance, Elements, Characteristics, types, components

The budget is a planning tool that expresses in financial or monetary terms the operations. And resources that are part of the company in a given period of time. To achieve the objectives set by the organization in its strategy. Likewise, it is a plan that integrates and coordinates all the areas, activities. Departments and managers of the company, expressing in a monetary. and quantified way the objectives that the organization wants to achieve. This facilitates their assignment and communication. To each of the consumer phone number lists areas, as well as the corresponding follow-up to guarantee compliance and detect possible deviations to be corrected. The budget is useful to determine. The amount of resources required to develop the different activities. Of the company and to control the income. Expenses and investments to be made in a given time. (Muniz, 2009)

What is a budget? Definitions

The budget is a projection expressed in quantitative terms of what the company. Wants to achieve at an operational and financial level, within a defined period. Which allows decisions to be made and control of the processes in light of the objectives and business strategy. Below are some definitions of budget according to different authors. It is an integrating and coordinating plan that is expressed in financial terms. Regarding the operations and resources that are part of a company for a given period. In order to achieve the objectives set by senior management. It is the determination and allocation of the resources required to achieve the objectives. Thus, it serves as an important steering instrument. It is perhaps the main tool to effectively run a medium or large company.

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Elements and characteristics of a budget

Therefore, It is a plan that expresses what the administration will try to accomplish. He is an integrator and coordinator by taking into account all the areas and activities of the company in such a way that each one contributes to the achievement of the global objective. Thus, the plan or budget of a department of the company is functional if it is identified with the total objective of the organization . This process is known as the master budget , formed and prepared jointly and in harmony by the different areas and departments that comprise it. It is expressed in monetary terms , that is, quantifiable and measurable units. DV Leads  and determines the operations of the organization in terms of income to be obtained, expenses and investments to be made. Therefore, This information should be elaborated in the most detailed way possible.

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