0
The budgeting process and the end product, the budget, comprise two essential elements of multinational management: planning and control. Planning is the primary function of the budgeting process and the result, the budget, provides the basis for subsequent monitoring and control of activities. For a multinational firm, with geographically dispersed subsidiaries to coordinate and control, an ineffective planning and control system can be disastrous.
For the typical multinational firm, the budgeting process is the primary period of planning at both corporate and subsidiary levels. During the planning phase, the subsidiaries establish short-term goals and objectives, devise appropriate operating strategies, and prepare a budget document for subsequent monitoring, control, and evaluation of operations. Although the budgeting process is an important element of success, very little is known about the methods which multinational firms employ to ensure that the subsidiaries present a realistic and reasonable projection of future events. Although there is extensive information about budgeting in the management accounting literature, there is very little information about the specific techniques employed by the managers of multinational firms to develop and formulate budgets.
Budgeting is essential to successful management. It involves five aspects:
Planning occurs when the company determines the priorities and objectives. Within this stage of budgeting a company needs to decide the direction to use the company's resources that will produce optimal success for the future. Planning is also when a company can evaluate and identify any issues from prior budgets and moreover establish future plans for development within the company to grow.
I believe the planning stage is extremely effective within a budget. This stage is the most critical stage for a company. If a companies do not plan accordingly than unforeseen changes can wipe a company out
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Advantage and disadvantage of budgeting?
The main advantage of budgeting is that it will help you get a clear view over your finances. You will also be able to save money. However, budgeting can also bring a lot of extra stress and work.
What does the word budgeting mean?
Budgeting means making a financial plan about how much money to spend on specific items. You might say for example, I am budgeting a thousand dollars for snacks.
What are the advantages and disadvantages of incremental budgeting?
Some of the advantages of incremental budgeting are that this type of budgeting is easy and quick. Some disadvantages of incremental budgeting are that different methods for achieving the objective may not be considered and if the budget is not fully spent it can be reduced during the next period.
Where can one learn how to use zero based budgeting?
Zero based budgeting is a really good approach to planning and making decision which is the opposite of traditional budgeting. The term "zero-based budgeting" is sometimes used in personal finance to describe "zero-sum budgeting", the practice of budgeting every dollar of income received, andthen adjusting some part of the budget downward for every other part that needs to be adjusted upward.
What is sales budgeting and why is it important?
Sales budgeting is the starting point of budgeting process as in sales budget first of all the sales demand is determined and after that all other budgets are prepared to fulfill that demand.
Advantage and disadvantage of budgeting?
The main advantage of budgeting is that it will help you get a clear view over your finances. You will also be able to save money. However, budgeting can also bring a lot of extra stress and work.
What are the advantages of planning programming budgeting systems?
When it comes to planning programming and budgeting systems, there is one major advantage over alternative methods. That is the ability to integrate long range planning, execution, and budgeting for any system.
Advantage and disadvantages of bottom top participative budgeting?
5 disadvantages of participative budgets
Tell me accounting projects topics?
Balancing and budgeting control in a manufacturing and marketing organization.
How does the budgeting process of an organization benefit a functioning standard cost system?
You need to go through the budgeting process. This will ensure that you know how much is being spent and where it is being spent.
What is the advantage of getting a partner program for a organization?
The advantage of getting a partner program for an organization is very clear. With this advantage, you can be steps ahead and have aid that one would not have otherwise.
Advantage of using template in an organization?
advantage of using template in an orgainsation
Write a program in FORTRAN C language to compute control ratios used in budgeting with reference to any organization?
if u give control ratios used in budgeting i can write program in C/C++
What includes tasks such as planning budgeting organization staffing controlling and leading which are required to accomplish a specified project?
Management
What is an advantage of an organization structured as a bureaucracy's?
it is an effective way for the organization to get work done
Relevant of managerial economics in an organization?
Managerial economics use economics concepts when making decisions about how an organization is to be managed, especially financially. This is one approach to running an organization that often considers budgeting, risks in the organization\'s investments, and practically all expenditures.
The concept of competitive advantage is as important for non-profit organizations as it is for profit organization?
The concept of competitive advantage is as important for non-profit organizations as it is for profit organization?
