Discuss the primary advantages of budgeting and how having a budgeting process contributes to good management in an organization. The primary advantage of budgeting is that budgeting can assist managers in planning and controlling expenditures/costs, and it also assists managers in predicting operating results and financial condition in the future periods. Planning involves the development of future objectives and the preparation of various budgets to achieve these objectives. This allows management to get a picture entire business so they are able to better plan accordingly. Control involves the steps taken by management to ensure that the objectives set down at the planning stage are attained, and to ensure that all parts of the organization function in a manner consistent with organizational policies.
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