Behavioural Aspects of Budgeting and the Budgetary Process

Behavioural aspects of
budgeting and Sequence
of the budgetary process

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Explain the budgetary process and depict issues of connection in behavioural aspects of
budgeting process.........................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Budget system is the process which is used in the management for decision making
purpose regarding financial resources. It is also used for the planning & control in the
management function. Organizationals follow the budgetary process in order to ensure that
company have effective administrative budgetary process (Abaluck, Gruber and Swanson, 2018).
Basically, budget or budgetary process is very essential for the organizations in order to manage
their resources and perform business activities accordingly. For the better understanding of this
report, Tesco selected which is UK based company. Tesco founded in 1919 by the John Cohen
and it is the largest retail sector organization. This assessment include the budgetary process and
the issues which related to the budgetary process.
MAIN BODY
1. Explain the budgetary process and depict issues of connection in behavioural aspects of
budgeting process
Budget is the financial plan which is prepared for the single period and it estimate the
sales volume, expenses, revenue, resources required, assets, liabilities etc. These financial
aspects are very important to analyse and it will consider in the budget so managers and
employees able to perform their task. Every organization produce budget in order to minimise
the efforts of performing task. For example: Managers of Tesco produced budget which include
all the relevant aspect such as overall expenses and revenues. With the help of budgetary
process, organisation able to produce effective budget and it include some steps which discuss
below.
Budgetary process is the process where organizations follow some steps and execute
their plans and further evaluate the performances. Every phase of budget is valuable for the
company and managers ensure that how it will impact the profitability of the business as well.
Budgetary process include the four steps that is planning, approval, implementation and
evaluation. These process discussed below:
Prepare budget: It is the initial process of budgeting where managers evaluate each and
every function which required to perform in order to achieve business goals & objectives. After
analysis that how much activity they have to perform, managers estimate the cost for the
completion of task and they ensure to minimise the cost in order to maximise their profit margin.