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Running head: BUDGETING
1
Budgeting
Student
Institution
BUDGETING
2
BUDGETING
Hamilton, E.
(2015).
Strategic
Planning
and
Budgeting:
Process,
Preparation,
and
Control. Budgeting Basics and Beyond, 21-33. doi:10.1002/9781118106754.ch2
For a company to realize maximum profits, managing its assets and funds is critical. By
definition, budgeting is the formal process that an organization uses to test potential expenditure
and investments. Moreover, the process could also involve investing available resources for
addition, disposition, and replacement of the fixed assets. In this respect, there are factors that
influence budgetary decisions including; availability of funds which is the pivot of any budget.
Also, government policies influence budgetary decisions since they determine the course that
any company will take on investments and partnerships. Another reason influencing budgetary
decisions is the earnings that a company makes. A budget should be within the resources
available. Additionally, lending terms of the financial institutions influence a budgetary decision
since companies require loans to facilitate their projects.
Kraan, D., & Tullock, G. (2015). The structure of the budgetary process. Budgetary
decisions, 12(7), 15-32. doi:10.1017/cbo9780511628320.004
The budgeting process involves several parties; the finance leader ove...