Standardized Approaches that can be used in the Preparation of Budgets
According to Plunkett and Attner, budgeting requires (1) setting goals, (2) planning and scheduling to reach the goals, (3) identifying and pricing resources, (4) locating needed funds, and (5) adjusting goals, plans; and resources to match actual fund availability. Image Source: amberpm.files.wordpress.comAny one of the following standardized approaches can be used in the preparation of budgets. 1. Top down Budgeting: ADVERTISEMENTS: These budgets are prepared by senior managers and are passed down to lower levels end the lower level managers are expected to operate within these budgets. There may or may not be any input from the lower level managers.In preparing these budgets, top management must take into consideration all relevant factors and carefully analyze these factors so that they do not miss or neglect any significant information about opportunities…