Budget Management Analysis Research Paper Example | Topics and Well Written Essays - 1000 words

reckon Management Analysis - Research Paper ExampleBudget development is a process that encompasses learning and fact gathering, making reasonable future assumption in term of revenue expected and salute to be incurred, and it also demand to be timely and have high accuracy and need to be approved and reviewed since it forms the basis of undertakings in an organization (MacEwan, 2009).Information and facts that form the basis of operating compute need to be gathered, this learning may be obtained from stake holder also from past periods budgets and whence this information should be linked to goals and priorities of organization in harmony with financial and budgeting policies of an organization (MacEwan, 2009).With reference to financial and budget guideline of organization, forecasted expenses taking into fixed and variable cost and revenue estimated including the assumption made are officially documented in an authentic format, and projection in financial terms are reflecte d. (MacEwan, 2009). At this phase, one needs to be realistic when formulating assumption.This phase shoots finalizing detail of the budget in preparation for the purpose of instauration and official approval of the budget. Budget should be organized during the presentation, and one should be ready to answer the query that arise, new adjustment that arise during presentation should be incorporated in the final draft and then communication of the budget approval within organization (MacEwan, 2009).This phase of development of the operating budget involve demining if an organization is running on track in regard to the approved budget, review of variance and find significant variance reasons is done, also is at this stage of the operating budget collective action from appear variance may be taken if need be, (MacEwan, 2009) and preparation of information to be used in the next budget start since budgeting is a cyclic process.Expense result in regard to budget expectation give ris e to variance, which is the