Budgeting
All companies have to budget for, or plan, their costs and have a budget. The preparation of a budget is an important aspect of a company’s success. The preparation of it helps management to establish short-term and long-term goals and standards for the company, motivates employees to achieve company goals, provides for a systematic review of performance. The success of the budgeting process depends on the cooperation of all employees. Budget (of a business) is the financial operating plan for an organization for a fixed period. The budget shows what income is anticipated and how the resources will be used during the budget period. It is a forecast used by a business to plan and control. The primary objective of the budget is to establish a financial framework for the operations of the business. The accounting period for the budget is usually either the calendar year or the fiscal year. The fiscal year is any arbitrarily chosen twelve-month period that does not correspond to the calendar year. The total of separate budgets from different departments within a company that shows in detail how the entire business operates is called master budget. As the business year progresses, management can use the budget as a control device that permits monitoring of the company’s operations.
Exercises in Word Study
Ex.1. Form nouns from the following verbs: prepare, establish, motivate, achieve, cooperate, operate, anticipate, permit.
Ex.2. Give the English for: успіх компанії; встановлювати довгострокові цілі; процес складання бюджету; встановлений строк; прибуток; прогноз; найважливіша задача; бюджетний рік; головний бюджет; використовувати бюджет як контрольний засіб; контролювати роботу компанії; виробничий план; бюджетний період.
Ex.3. Match words from list A with words from list B that have a similar meaning:
Ex.4. Find suitable opposites to the following words: short-term; periodic; failure; expenditure; secondary.
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