FNSACC412 Prepare Operational Budgets - Assessment 3

Task 1

The benefits of Budgeting tend to flow from how well the budgeting process has been carried out and how well the purposes have been met. The process has the potential to enhance the planning and control functions within the organisation by providing a systematic way of reviewing objectives, coordinating future activities, setting realistic targets, facilitating communication and possibly acting as a motivator for staff.

Provide and discuss four (4) specific examples of how these positive aspects of the budgeting process operate.

As a guide, you answer should be approximately 200- 300 words (so around 50-75 words per point)