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A budget

Question

A budget sets a limit on spending and thus is a

method of control used to help organizations achieve goals. To follow a budget requires discipline, and without this planned allocation of resources there is the risk of spending too much money in one or a few areas, thereby not having enough for other areas. Within the business context, who is responsible for setting and following a budget? Which components of the organization should play which roles in budgeting for that company? How can a budget be used to measure the performance of executives, managers, and employees?

 
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