Multi-Level Budget
Structures
Multi-Level Budget
Structures
Inbudgeting,
the
hierarchy
defines
the
STR
U
CTU
RE
Budget Level
It is a part of a budget structure.
Department
Level 3: BFY, Appropriation, Fund, Sub Fund,
Department, Object Class
The Importance
of
Communication of
corporate objectives
Budget is a formal process
of communicating top
management expectations
(vertically and laterally).
Employees become aware
of their roles in
achievement of overall
company objectives.
Coordination
Control
Ensures that plans are complied
policies.
Performance evaluation.
Serves as a yardstick for
Motivation.
Resource Allocation
Scarce resources are