Budgeting: Objectives, Importance, Goodwill & Stakeholder Relations

This report provides an overview of budgeting, focusing on its objectives, importance, and role in fostering goodwill and positive stakeholder relations. It highlights that budgets are estimations of a company's cash and resource usage in production, serving as plans to set performance standards. The objectives include estimating income and expenses, coordinating action plans, and aiding management decisions. The report emphasizes the importance of budgeting for informing companies about financial needs, controlling expenditures, and ensuring transparency. It also discusses how well-organized project planning and consideration of internal and external departments contribute to a company's goodwill. The report also touches upon convincing stakeholders by providing realistic information for decision-making and addresses questions regarding profitability and loss mitigation, referencing academic sources. Desklib provides students with access to this and other solved assignments.

Assessment activity 3

Covered content
• Introduction
• Budget Objective
• Importance of budget
• How budgets create goodwill
• Convince the stakeholders
• Question and answer session
• Reference

Introduction
Budget are estimation to use of company cash and other
resources in production or products and services. It is used to
determine total cost which are required during that process. It
simply a kind of plans in order to set performance standards.

Budget objectives
• It is prepared in order to estimate income and expenses
done by company during the period.
• To make coordinated plan of action which is use to
achieve its objectives
• To help in management decision making.

Importance of budget
• It need to inform company regarding how much money
they are required to carry out its operations.
• It is use to control and monitor income and expenditure.
• Budgets are base for accounting and financial
transparency

How budgets create goodwill
Company need to plan its projects in well organised manner.
It is all because to generate more profit with minimum cost.
So during preparation of budgets key elements of company
internal and external department are must be considered. It
the performance of the company are effective in order to
maintain its goodwill.

Convince the stakeholders
For convincing stakeholders, company will assure that it will
provide realistic and valid information so that these
stakeholders are able to take frequent decision. After that,
company frame their budgets accordingly.

Question and Answer session
Q1. Will this budget provide more profit from last year?
Ans: According to last year performance of the company this budget
are made in order to cut down extra expenses and focus is mostly done
on profitability.
Q2. Is there another ways to fix losses that are incurred in previous
year?
Ans: Investors are planning to control its extra costs that are use in
production process. So definitely this budgets will overcome this issues.

References
Dugdale, D. and Lyne, S., 2010. Budgeting
practice and organisational structure. Elsevier.
Mueller, F.W., 2012. Integrated cost and
schedule control for construction projects.
Springer Science & Business Media.

Thank You