Characteristics of Budgets

E 1.You recently attended a workshop on budgeting and overheard the following

comments as you walked to the refreshment table:

1. Budgets are the same regardless of the size of an organization or management s

role in the budgeting process.

2. Budgets can include financial or nonfinancial data. In our organization, we

plan the number of hours to be worked and the number of customer contacts we want our sales people to make.

3. All budgets are complicated. You have to be an expert to prepare one.

4. Budgets don t need to be highly accurate. No one in our company stays

within a budget anyway.

Do you agree or disagree with each comment? Explain your answers.