Budgets: defined by the Sticky-Marketing.com monthly magazine |
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Budgets initially can be forward financial plans used to estimate likely performance, resource allocation and for comparing one strategy to another. Typically a company will discuss internally possible strategies or tactics for coming years and departments will then submit budgeted proposals upward to senior management (bottom up) who merge all departmental budgets and create a company wide budget including budgeted expenditure and revenues. From this they can see a possible future scenario and make decisions, prioritising departmental spending. Normally after consideration senior management will adjust and return a budget down to each functional department, which may be the same or rather different from that departments wish list and in this (top down) part of the budgeting process, the departments budget targets are set for a future time period. Often in the coming period, perhaps the next year, the primary importance for that department will be at least beating budget during each financial month. 05/08/2001 Use your browser back button or
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