I need 1 responses to each student discussion board post. Please keep separate and in order. each post should be at least 150 words each with references Turnitin is being used to check for plagiarism...

Brandy Havens

Hi Marcus. Thanks so much for getting our discussion off to such a great start! You made some very good points! An organization is ultimately well served when the employees buy into management’s overall vision for the company. Staff are motivated not only to be productive but also innovative looking for new opportunities and solutions!

Now, let’s look at common problems that we encounter when preparing a company-wide budget. We’ve all heard the old adage, "set the bar low so it's easy to reach." That's exactly what managers do when they build slack into the budget. It defeats part of the purpose and usefulness of the budget.

Class, on the same note, what are some negative consequences that can occur when we set the bar too high?

Anna Williams

Budgeting Comments

The quote that I chose to discuss from the text is: "One major criticism of budgeting is that it is used as a ‘cost reduction’ tool rather than a ‘cost control’ tool. The objective of the budget is to control costs at an efficient level of operation." I completely agree with this comment for several reasons. When most of us hear the word “budget” or “budgeting” our minds tend to automatically go to what is necessary to scale back. Budgeting is often associated with a reduction of spending and thus it has attached itself to a negative connotation. Indeed, budgeting should be used as cost control tool rather than a cost reduction tool. If we could adopt the concept of controlling the budget rather than reducing it, we could stand a chance at long term financial sustainability whether it be in personal finance or in respect to business ownership/operations.

In my opinion, the major purposes of budgeting are to create financial stability by way of financial management methods such as saving, efficient spending and expense control. Badem XXXXXXXXXXclaims, “It was a mutually agreed opinion that budget systems are useful for defining the resources, observing the activities and planning the expenditures. The process of budgeting and its product, the budget, were highly useful in supporting business management to complete its functions of planning, directing and controlling business activities” (p.4). In short, the main goal of budgeting was to control public expenditure.

References

Badem, A. cemku XXXXXXXXXXThe Origin of Term Budget for Business Enterprises: The Development of Business Budgeting from Beginning to the 1940S.Journal of Suleyman Demirel University Institute of Social Sciences,24(2), 1–28. Retrieved from http://search.ebscohost.com.proxy-library.ashford.edu/login.aspx?direct=true&db=a9h&AN= XXXXXXXXXX&site=eds-live&scope=site