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Question: Please use your own words.
Just comment on the statement below. Do you agree and if so why? The need to develop a solid budget is key to the success of any size organization. A budget can be a detailed or vague outlook on how funds will be appropriated for a period of time. It is found that most entities that don't have some type of budget will usually fail. Budgets can help an organization stay within the boundaries needed in order to be successful. If an organization does not have a budget and does not plan for where scarce funds will go, then it is inevitable that funds will be mishandled or that there will be a lack of funds for certain needs of the company. A budget is linked to goals that measure an organization's success. Just like a budget, goals are thought out as well. Organizations set certain goals, and it is when they meet those goals, that they are successful. Well most goals desired by an organization require funds or resources to obtain. For example, let's say that a company's goal is to sell a lot of their product, they may need to advertise. A budget may be set aside just for advertising.
Or let's say there is a major potential client and to close a deal, the organization may need to take the client out to eat. There may be a budget set aside for that. Or on a public service note, let's say a city wants to cut down on the accusations of wrongful death/police brutality then they might use funds in a budget set aside for law enforcement upgrades to buy body cams for police officers so that there is evidence that police officers are performing their duties correctly. All in all, budgets will make or break an organization. If a good budget which was thought out and accurately reflects the needs of the organization, then proper execution of that budget should allow the organization to be successful. Mahalo!
Volume variances are computed for which of the following costs
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