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Topic: Budgeting and Planning

Overview:

Planning and budgeting are essential for management control. Effective planning and budgeting require looking at the organization as a system and understanding the relationship among its components. Planning consists of developing the objectives (the work required to achieve the organization’s goals), timetables, and performance standards needed to implement the organization’s strategy and assigning individual accountability for results.

Introduction:

This paper will discuss budgeting and planning role, the master budget, and the element of cost management in the business world.

Budgeting and financing

Key roles

Purposes

Master budget

Components

Process

Behavior

Element of cost management

Quantity model

b) Ordering decisions

Conclusion

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