Do you use a planner or other scheduling device?
budget Indirect costs Nonsalary expenditure
variances Operating budget Position control
Profit Rate variances Revenue budget Salary (personnel) budget Variable budget Variable costs Variance Volume variances Zero-based budget
CHAPTER 14 • BUDGETING AND MANAGING FISCAL RESOURCES 185
B udgeting is the process of planning and controlling future operations by comparingactual results with planned expectations (Finkler & Kovner, 2007). A budget is a detailed plan that communicates these expectations and serves as the basis for compar- ing them to actual results. The budget shows how resources will be acquired and used over some specific time interval; its purpose is to allow management to project activities into the future so that the objectives of the organization are coordinated and met. It also helps ensure that the resources necessary to achieve these objectives are available at the appropriate time. Lastly, a budget helps management control the organization.