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a Budget is a financial or quantitative
statement, prepared and approved prior to
defined period of time, of the policy to be
pursued during the period for the purpose
of attaining a given objective

a The whole process of designing,

implementing and operating budget is
called budgeting
    

a  basis for internal audit for regularly evaluating
departmental result
a Scarce resources can be allocated in an optimal way
a It forces management to plan ahead so that long term
goals are achieved
a Communication and coordination throughout the firm
improves
a Participation in budget has a motivational impact on
the work force
a reas of efficiency and inefficiency are identified
a People are made responsible for items of cost and
revenue
 
 m 

a They are perceived by work force as pressure
device imposed by top management

a Departmental conflict arises because of

competition for resources allocation.

a They make allowance for task to be performed only

in relation to volume rather than time
 BUDGETING PROCESS
a Specification and communication of organizational objective

a Determination of key success factor

a Establishment of clear lines of authority and responsibility

a Establishment of budget centers

a Determination of budget period

a Establishment of budget committee

a ppointment of budget controller

a Preparation of budget manual

  

3lexible budget is a budget which by
recognizes the difference in behavior
between fixed and variable cost in
relation to fluctuation in output,
turnover or other variable factor etc. it
is designed to change in relation to the
level of activity actually attained.
   



a Specify the time period that is used

a Classify all the cost into fixed, variable
and semi-variable categories.
a Determine the types of standards that are
to be used.
a nalyze the cost behavior pattern in
response past levels of activity
a Build up appropriate flexible budget for
specific level of activity.
 §
 
§
  
a 3lexible budget enable an organization to predict
its performance and income level at a given level of
sales level and activity levels.

a Impact of changes in sales and production levels on

revenue, expenses and ultimately income

a 3lexible budget enables more accurate assessment

of managerial and organisational performance.
 
 
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 mRKETING BUDGET

a  marketing budget is an estimate of projected

costs to market your products or services.
a  typical marketing budget will take into account
all marketing costs, like
1.
arketing communications
2. Salaries for marketing managers
3. Cost of office space
ŒELPFUL PRE-BUDGETING RESERCŒ

a Industry and
arket esearch

a Competitor nalysis/SWOT

a Internal marketing performance records e.g.

marketing metrics, marketing controls.

a
arketing udit.
 TYPICL GENERL mRKETING EXPENSES

a dvertising agency commissions

a Salaries for marketing managers

a Salaries for marketing support e.g. marketing

assistants.
a Office space

a 3ixtures and fittings

a Travel costs

a Other direct and indirect marketing costs,

including marketing communications costs
 TYPIC
ETING CO

NICTIONS
COSTS
a Personal Selling
a Public elations
a Printing
a
ailing
a Website Development  osting
a Brochure Design
a dvertising
a Television dvertising
a adio dvertising
a Direct
arketing
a Newspaper dvertising
a Proposal Development/bid submittal
a Networking
a Event ttendance
a Sales Promotion
a
any other marketing communications tools
TŒNK YOU