BUS 630 Week 4 Budgeting and Controlling Cost

Budgeting, and Controlling Costs

Ashford University

Managerial Accounting - BUS 630

Budgeting and Controlling Cost

Budgeting is an essential tool for the successful management of any company. It's a way for upper management to communicate its plans and intentions to the entire company. The budget is their plan for success. According to Noreen, Brewer, and Garrison (2011) it is a quantitative plan for acquiring and using resources over a specified time period. The budget process can seem like a tedious exercise for some, as it involves and affects all areas of the company, but in the end it enables a company to plan how it will achieve revenue goals and control costs. In the simplest of terms the budget explains how much the company should be...