ACC 308
BUDGET PLANNING
- Budget planning is a list of the resources we use so we can control our resources or our expenses.
Budgeting planning is also a process in which we create a plan to spend our money, so once we
have this plan, we can easily determine if we have enough money for the things we need.
EXAMPLE OF BUDGET PLANNING
- When I have school, my mother gives me an allowance. I make the plan, I list the expenses like my
transportation, for my snacks and lunch, and if I have excess, I save. So for this, we easily determine
how we will spend it and what items or goods we are going to buy.
WHY SHOULD AN ORGANIZATION HAVE BUDGET?
- It is important that an entity have this process of budgeting. The reason is that they are in the
business organization and need to determine the expenses or if they have losses. Also, it helps to
plan or have goal setting and, most importantly, it helps to control, which is to ensure that they
move toward the organizational goal.
For example, If my company has a budget of 5 million pesos, it can easily determine how many
lipsticks it should produce with that budget.
WHAT WILL HAPPEN IF AN ORGANIZATION EXCEEDS THE BUDGET?
- If an organization exceeds its budgets, it can cause failure or loss in the organization. If we think of
it, we are not aware of our tendency, so it may result in a problem in terms of finances.
For example, if we exceed our budget and also have expenses coming and we are in the process of
production, it can cause a lot of problems. What if we have an expense for bills like current, water,
and rent, then we have coming bills for the resources we purchased. It can result or create a false
cash needed because we are appropriate budget or we exceed our budget. That’s why it is
important that we plan and do budgeting so we do not encounter a lot of problems.
BUDGET PLANNING
- Budget planning is a list of the resources we use so we can control our resources or our expenses.
Budgeting planning is also a process in which we create a plan to spend our money, so once we
have this plan, we can easily determine if we have enough money for the things we need.
EXAMPLE OF BUDGET PLANNING
- When I have school, my mother gives me an allowance. I make the plan, I list the expenses like my
transportation, for my snacks and lunch, and if I have excess, I save. So for this, we easily determine
how we will spend it and what items or goods we are going to buy.
WHY SHOULD AN ORGANIZATION HAVE BUDGET?
- It is important that an entity have this process of budgeting. The reason is that they are in the
business organization and need to determine the expenses or if they have losses. Also, it helps to
plan or have goal setting and, most importantly, it helps to control, which is to ensure that they
move toward the organizational goal.
For example, If my company has a budget of 5 million pesos, it can easily determine how many
lipsticks it should produce with that budget.
WHAT WILL HAPPEN IF AN ORGANIZATION EXCEEDS THE BUDGET?
- If an organization exceeds its budgets, it can cause failure or loss in the organization. If we think of
it, we are not aware of our tendency, so it may result in a problem in terms of finances.
For example, if we exceed our budget and also have expenses coming and we are in the process of
production, it can cause a lot of problems. What if we have an expense for bills like current, water,
and rent, then we have coming bills for the resources we purchased. It can result or create a false
cash needed because we are appropriate budget or we exceed our budget. That’s why it is
important that we plan and do budgeting so we do not encounter a lot of problems.
