When receiving the monthly budget at the beginning of the month, the managers have to assume how to use the budget amount given wisely. Given that the employees need materials to get the job done, there are separate budget amounts for specific areas that need to be dispersed accordingly. For example, working at a health care industry in the materials management department, the supplies that are needed for the department need to be available in order for the department to run such as: computers, handheld inventory scanners, and carts. Some of these items have already been purchased prior to when the facility was open for business, and the life span for some items such as carts, have a long life spam, therefore planning the budget for supplies monthly, sometimes does not need to be met, because all the supplies needed has already been supplied for the employees already. Under budgeting is a safe assumption for this specific department because it would save money for the department in the long run. For example if one of the carts broke, and cannot be repaired, they would have
When receiving the monthly budget at the beginning of the month, the managers have to assume how to use the budget amount given wisely. Given that the employees need materials to get the job done, there are separate budget amounts for specific areas that need to be dispersed accordingly. For example, working at a health care industry in the materials management department, the supplies that are needed for the department need to be available in order for the department to run such as: computers, handheld inventory scanners, and carts. Some of these items have already been purchased prior to when the facility was open for business, and the life span for some items such as carts, have a long life spam, therefore planning the budget for supplies monthly, sometimes does not need to be met, because all the supplies needed has already been supplied for the employees already. Under budgeting is a safe assumption for this specific department because it would save money for the department in the long run. For example if one of the carts broke, and cannot be repaired, they would have