Why is budgeting important to an organization
Understanding the financial health of your business is critical to its success over the short and long term as you have seen in the simulation play. Budgeting is a key skill that will help you achieve healthy financial numbers and organizational effectiveness.For this week’s Discussion topic you will be reviewing the case study on budgeting for Kraft Foods UK, at this link. http://businesscasestudies.co.uk/kraft-foods-uk/budgeting-and-strategy/what-is-a-budget.htmlWhen you have completed reviewing this case study, and using the other readings and resources for this week you will answer the following questions: (Total 250 -500 words with citations/references)1.Why is budgeting important to an organization?2.What is the relationship between an organization’s objectives and its budgets?3.Give an example of the way in which variance analysis will help Kraft to become more effective.4.What sorts of expenses does Kraft incur? How does budgeting help to control these expenses?5.Why is double loop feedback sometimes required in budgeting?
