Summary |
The purpose of this book is to define managerial budgeting and to demonstrate its unique value as a tool of management.
Managerial budgeting is defined as the translation of nonfinancial operating plans into accounting terms and their evaluation in terms of a firm’s financial objectives. This definition recognizes that sound planning in such non-financial areas of management as marketing, engineering, and personnel is a prerequisite to sound financial planning. It implies, however, that the coordination and evaluation of these plans in financial terms is, in our society, the unique function of top management. A satisfactory sustainable return on investment is postulated as the general necessary condition for good management.
|
