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Departmental Budgeting

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Running head: BUDGETING 1 Budgeting Name Institutional affiliation BUDGETING 2 Discussion Budgeting is an organizational plan highlighted in monetary terms. The responsibility of preparing the budget should not be placed on one department. Each department has its cost drivers that differ from other departments, and this should be acknowledged in the process of preparing a budget (Davis & Davis, 2016). Employees in each department understand what keeps their department up and running and when they are given the privilege of preparing their departmental budget, they are committed to achieving the specific goals of their department. For instance, one department may feel satisfied if it was offered enough funds that would see their project complete so it would be unfair to offer the same amount because departmental spending is different. The budget figures and estimates for each department may vary considerably, and this cannot be adjusted and allocated by one central department (Davis & Davis, 2016). When each department is given the privilege to prepare its budget, they feel that their departmental problems and solved because the budget is a reflection of their budget estimates ...
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