What is important about the budgeting process

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Assume you have just been hired by a large manufacturing company and have been assigned to a team that has the responsibility of gathering the data for completing the company's operating budget. Your first assignments is to make the initial contact with the department managers who will be providing data to insure that everyone involved knows the importance of preparing a realistic budget. The first manager you approach does not appear to know what an operating budget is and apparently is not interested in assisting your team in preparing a meaningful budget.

Problem 1: Explain to the manager what is important about the budgeting process; what is a master budget; the components of the master budget; and how those components relate; and what would differ in the master budget for a service organization.

Reference no: EM132971278

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