QUESTION 60
HOW DO I PREPARE A BUDGET IN NORMAL TIMES?
Why it’s important: Managers live and die according to how well they exercise budgetary control. But if the budget is wrong in the first place, you’re fighting a losing battle.
Normally the role of the manager in budget preparation is limited to completing a budget for each account they are responsible for; for example, photocopying or lighting, etc. The accountant will send each budget holder a schedule which looks something like that shown below, with the last three columns left blank for the manager to complete. Managers will be asked to base their calculations on current prices and to ignore inflation. On receipt of the completed schedule, the accountant will increase each budget head ...
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