Unit 2 Managing A Successful Business

Answer :

INTRODUCTION

A plan which outlines the financial or operational goals of the organization is known as budget. It helps in allocating resources, evaluating the performance and for formulating plans. For successful financial planning budgeting is the first step in this process. In this report there is a brief understanding about the purpose of preparing budget and the process for budgeting which company should follow for developing business model. The important cost drivers has been identified and in what areas cost budgeting will be important. Application of traditional budgeting approaches has been classified. Various alternative budget methods like Rolling budgets, zero based budgets and activity based budget has been explained with its application, merits and demerits.