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Budgeting process

July 13, 2016 0 Comment

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Case Study Analysis The budgeting process and the use of budgets have been regarded as very important tools in managing daily operations of organization and steering them toward their strategic goals. That said, much criticism has been leveled at traditional budgets and their preparation. Some of the criticism has made note of the cumbersome, time-consuming, even painful nature of the budgeting process itself, the observation that it is too focused on cost reduction and not on growth and encourages “use it or lose it” spending behaviors and the list goes on. Requirement: The Board of Directors has asked the CEO to provide them with some background on traditional budgeting and the current thinking on it and alternatives available. The CEO in turn has tasked you getting her up to speed with this information so she will be well-versed when speaking with the Board on this matter. You are to do some independent research on the topic and write a memo to the CEO discussing your findings. You can use the resource listed below and should include at least four other sources – such as CFO magazine articles, Journal of Accountancy… The memo is due at the end of Unit 6 – there is no set page limit and you should list your references. Please include a memo header. (think roughly 2-4 pages) Does budgeting have to be so painful?

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