B202B: Understanding Business Functions II
Second Semester 2012 – 2013
Planning a budget
Outline the purpose of budgets within organizations, and then evaluate how budgeting can contribute to a business achieving its aims.
Analyze the factors that managers might have to take into consideration when preparing budgets. Support your answer with examples.
It was mentioned in the case that “Budgets use resources so they are closely linked with key performance indicators (KPIs). KPIs help to evaluate the overall performance of the business”. Write an essay to explain the importance of KPIs to organizations. Use examples of real organizations and the various business functions.
