Accounting for nonprofit organization

E3.1 (discussion of uses of budgeting)

Rex, a budget officer, conducted a class for non accounting managers and program directors on the budgets. Rex began the class discussion by asking “What are some of the uses of a budget?”One of the managers replied “planning” another said “ Evaluating performance” another suggested “Coordinating activities” “what about implementing plans?” another Said “Or Communicating them?” Still another added “Don’t Forget Motivation” one manager warned from the rear of the room. “I’m on the school board”, commented another,” and we use it to authorize actions”. Finally, one manager asked “Can budgets do all of that?” “Yes” Rex Responded, “all that and more”
Define Budget:
Select any four of the uses suggested by the managers and explain how a budget might accomplish each of the four uses suggested.

Sample Solution

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