Budgeting Question:

Following are the characteristics of a good budget:
★ It is expressed in quantitative or monetary terms.
★ It is prepared for a fixed period of time It is prepared before the period in which it commences.
★ Practical to implement.
★ It spells out the objects and the policies to be pursued in order to achieve the objective of the organisation.
★ Many people are involved in drawing up a budget.
★ Flexible enough to allow changes in the changing environment.
★ Prepared on the basis of established standards of performance.
★ Analysis of cost and revenues.
★ On the basis of budget report performance of the organisation is constantly monitored.