"Budgeting Is An Instrument Of Planning As Well As A Tool Of Coordination And Control". Can Anyone Just Give Me Some Suggestions On This Please?
Answer:
Budgeting refers to the process of planning revenues and expenses of the company. If it is considered as an important planning tool then it is also considered as a significant tool of coordination and control. The reason is that when forecasts are made afterwards it gives the company a long term view for the allocation of the resources as a result, the company can assure that resources are allocated efficiently. It also gives the company information about the deviations of the actual acting out of the company from the targeted performance. In this way it increases the control over the resources and operations of the company.
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