BUDGET PREPARATION AND IMPLEMENTATION

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BUDGET PREPARATION AND IMPLEMENTATION

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Budget can simply be regarded as estimate of how money will be spent over a period of time in relation to the amount of money available. Budgeting implies planning while planning is not a process of guesswork, but the result of research, observation and forecast. In order to prepare a budget, the management is forced to think ahead and examine critically every factor that are likely to affect the achievement of planned objectives. Budget is therefore looking into the future; it provides the yardstick for evaluating subsequent performances budget is a means to an end itself. To have a clear picture of the topic, we have to allude ourselves to the meaning of budget preparation and implementation. Budget preparation deals with computing of various expenditure and revenue which is as a result of research and forecast while implementing the budget is to put into effect what has been laid down in the budget. Budget preparation and implementation pilots the affairs of the local government in achieving their constitutional responsibilities.

A budget is a quantitative expression of a proposed plan of action by management for a set time period. It is because resources are constrained that choices must be made to obtain the maximum benefit of the resources available for use. The budget constraints describe the combination of limitations on nonfinancial and financial resources within an organization’s management control. The core benefits of budget are compel planning and monitoring of the implementation of plans, provide reliable performance assessment criteria, promote communication and coordination within the organization (Charles T.Horngren, 2014).

Preparation of budget is systematic and formalized approach for stating and communicating the firm’s expectation. Budget is the most widely used method of its unique feature in controlling financial resources. Because of its unique feature in controlling financial resources, preparation of an annual budget is amendatory in most of the entities. Also, it is a financial or quantitative statement, prepare containing the planning and controlling procedures, policies and regulation to be pursued during the period (GetuTola, 2012).

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Project Price

NGN5,000
Number of Pages

69
Number of Chapters

1-5
Additional Content

Abstract,Table of content and Questionnaire

BUDGET PREPARATION AND IMPLEMENTATION

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