によって ginna ramirez 4年前.
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importance of costs and
budgets for the organization and its relation to decision making
Budgets play a critical role in organizations by providing clarity on sales, costs, and expenses, which are essential for competitive performance. They serve as financial plans that guide businesses towards their proposed goals by converting business plans into quantitative and monetary terms.
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importance of costs and
budgets for the organization and its relation to decision making Produced by Ginna Paola Ramirez using the website: https://www.mindomo.com/es/mindmap/f298785c10a84338b9d1e9cdda87b4be organization Although companies have not implemented a budget plan from the beginning, it is always kept in mind when making decisions with a well-developed budget, organizations can remain in a highly competitive market the budget is very fundamental since it controls and plans the profits of an organization advantages and disadvantages of budgets: disadvantages some admins take the budget very strictly, which does not allow new financial alternatives to be explored requires commitment from all levels of the company for its proper functioning, which is not always possible implementation is expensive and time consuming advantages allows clarity regarding the sales, costs and expenses that each department of the company must meet provides financial information for the company to generate competitive results allows to determine if the company has the capacity to develop the planned activities budget is defined as: allows better clarity in the economic conditions in a company in areas such as: investments Bank transactions financial liquidity indebtedness It's a financial plan designed to guide the
businessman to get the targets of the proposed goals involves materializing business plans in quantitative and monetary information historical data is essential when making a budget different types of costs unit production total cost factory and non-factory incurred travel or replacement investment cost factors indirect expenses are considerable as free of control direct expenses there is a control by the company that repeals them must be representative must be quantifiable must be identifiable costs can be defined as: the sum or effort used to produce something the cost is recoverable at any time the cost of giving up or sacrificing something to get
