As far as I know, the concept
of “the budget is a target” can be explained in terms of
organizational budget. An organizational budget is a target wherein it
establishes limitations for how much money would be spent on one
particular area of department. The budget will offer a guideline for how
operations need to function so that they can stay within a maximum goal
of money spent.
The budget is truly an
organization's target that it sets for itself. What the management
commits is eventually turned into action.
Sub: #2 posted on Thu, 05/26/2011 - 22:54
Unregistered
this is very easy to explain.
once you are budgeting for said your monthly expense, then you are
targeting of the things you are going to buy. you won't go further more
if you have got what you need.
When we were in debt of over
$140,000, we knew we had to budget to get out of debt. We tried put
limits on spending for the various categories of expenses. However, we
learned that if we spent more on paying off our debt (and now investing)
than on any other category of spending we would get out of debt quick.
We developed a financial pyramid where we organized our categories of
spending and made sure that the debt reduction was the largest amount of
spending that we did. The second greatest category of our spending was
housing closely followed by all insurance including health insurance.
Next came food/clothing/household items followed by utilities. You can
check out how we organized and how we were able to pay off our entire
debt and now being able to invest substantial sums of money and live
worry free.
The budgeting was the hardest part. But once we developed our budget or
financial pryamid, it was easy to stick to it and a lot of fun to watch
the progress we made. Please join us.
A budget should certainly be a target for any firm, organization or an
individual. It actually targets the cots or the revenue that the
organization aims to reach within a stipulated period of time. Through a
budget, you can easily check how much can be spent and how much is
needed to get back on the planned track. In fact most large firms use
budgetary control as the main means of
supervision.
Sub: #1 posted on Tue, 01/11/2011 - 02:48
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Sub: #2 posted on Thu, 05/26/2011 - 22:54
Sub: #3 posted on Fri, 06/03/2011 - 19:23
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The budgeting was the hardest part. But once we developed our budget or financial pryamid, it was easy to stick to it and a lot of fun to watch the progress we made. Please join us.
Sub: #4 posted on Wed, 07/06/2011 - 07:52
(Posts: 1 | Credits: )
A budget should certainly be a target for any firm, organization or an individual. It actually targets the cots or the revenue that the organization aims to reach within a stipulated period of time. Through a budget, you can easily check how much can be spent and how much is needed to get back on the planned track. In fact most large firms use budgetary control as the main means of supervision.
Sub: #5 posted on Wed, 07/06/2011 - 08:37