Budget: An Important Management Tool for Planning

1028 Words Feb 3rd, 2018 4 Pages
The budget performs the roles of estimating the income as well as expenditure for a given period of time for any given organization. An organization's budget can serve a number of important purposes. Such purposes includes the monitoring of an organization's income as well as expenditure over a given period of time (usually a year).It can also help in determining if various adjustments need to be made in the set programs as well as goals. The budget can also be used as a corporate governance tool. This is when it used as a basis of transparency and accountability. In this paper, we present a detailed analysis of the amendments that must be made to the IT budget of Riordan Manufacturing Virtual Organization. The amendment process is to be guided by two fundamental objectives: To increase the organization's spending on items that are related to hardware, software, as well as outside IT support services by 4% To decrease the overall IT budget by 2 %
An overview of the original IT budget
Riordan's original IT budget contained a total of eighteen elements. These elements were grouped into two categories: compensation and other expenses.
Compensation
Under the compensation category, there are wages and salaries, benefits and expenses.

Other expenses
Under other expenses category, there are…
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