Discuss the process of preparing a budgetSolutionPROCESS OF

Discuss the process of preparing a budget

Solution

PROCESS OF PREPARING BUDGET

Process of preparing Budget refers-:

Mainly 5 steps to prepare budget -:

Obtaining estimation

Obtaining estimation of sales, production level, expected cost and availing of recourses from each sub-unit/division/department.

Coordinating estimation

In my organization, the budget committee evaluates the different plans submitted by various organizational units to determine the potentiality.

Implementing the budget plans

The final budget is presented to the managers concerned and adopted as the plan of operation of the coming budget period.

Reporting interim progress towards budgeted objectives

As a feedback of budgeting process, performance reports are prepared to inform departmental managers and top management about the performance achieved in terms of budgeted figures.