budgeting
Topic Gateway Series
Budgeting
Budgeting
Topic Gateway Series No. 27
1
Prepared by Louise Ross and Technical Information Service
Revised March 2008
Topic Gateway Series
Budgeting
About Topic Gateways
Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research.
Topic Gateways are available electronically to CIMA members only in the CPD
Centre on the CIMA website, along with a number of electronic resources.
About the Technical Information Service
CIMA supports its members and students with its Technical Information Service
(TIS) for their work and CPD needs.
Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA
Official Terminology 2005 edition.
CIMA members and students should sign into My CIMA to access these services and resources.
The Chartered Institute of Management Accountants
26 Chapter Street
London SW1P 4NP
United Kingdom
T. +44 (0)20 8849 2259
F. +44 (0)20 8849 2468
E. tis@cimaglobal.com www.cimaglobal.com 2
Topic Gateway Series
Budgeting
Budgeting
Definition and concept
A budget is:
'A quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.'
CIMA Official Terminology, 2005
Budgeting practices are heavily influenced by the organisation's management style and can vary considerably, but the theory is
Budgeting
Budgeting
Topic Gateway Series No. 27
1
Prepared by Louise Ross and Technical Information Service
Revised March 2008
Topic Gateway Series
Budgeting
About Topic Gateways
Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition, a brief overview and a fuller explanation of practical application. Finally they signpost some further resources for detailed understanding and research.
Topic Gateways are available electronically to CIMA members only in the CPD
Centre on the CIMA website, along with a number of electronic resources.
About the Technical Information Service
CIMA supports its members and students with its Technical Information Service
(TIS) for their work and CPD needs.
Our information specialists and accounting specialists work closely together to identify or create authoritative resources to help members resolve their work related information needs. Additionally, our accounting specialists can help CIMA members and students with the interpretation of guidance on financial reporting, financial management and performance management, as defined in the CIMA
Official Terminology 2005 edition.
CIMA members and students should sign into My CIMA to access these services and resources.
The Chartered Institute of Management Accountants
26 Chapter Street
London SW1P 4NP
United Kingdom
T. +44 (0)20 8849 2259
F. +44 (0)20 8849 2468
E. tis@cimaglobal.com www.cimaglobal.com 2
Topic Gateway Series
Budgeting
Budgeting
Definition and concept
A budget is:
'A quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.'
CIMA Official Terminology, 2005
Budgeting practices are heavily influenced by the organisation's management style and can vary considerably, but the theory is