1. Budget Budget

2. Definition of budget Budget is a formal plan that is stated in dollar terms and includes proposed income and expenditures Budget is a formal plan that is stated in dollar terms and includes proposed income and expenditures

3. Characteristics of good budget 1- Outcome oriented. 2- Understandable and based on informational data based. 3- Flexible, prompt, contingency bases 4- Based on controllable factors 5- Fair and objective

4. Types of budget 1- Operating budget 2- Capital expenditure budget 3- Cash budget

5. Gathering information and planning Developi ng departm ental budgets Develo ping cash budge t Negotiatin g and revising Evaluating Steps of budgeting process

6. Advantages of budget 1- Ensure the most effective use of financial and non _ financial resources. 2- Establish a frame of reference for managerial decisions. 3- Motivate employees by bringing them together to achieve common goals

7. 4- Facilitate work coordination a cross the entire organization through communication by identifying who is responsible for what. 5- Identify potential trouble sports so corrective action can be taken. 6- Help employees learn from the experience. 7- Help organization in evaluating its progress.