Every company has a limited or a rationalized budget through which the company needs to prioritize and rationalize their budget allocation criteria. The company has to make a list of departments or project the company needs to undertake and need to keep its focus on the things which need immediate capital or capital inflow in order to operate.What is an example of a budgeting example?
Budgeting Examples. Examples of budgeting are as follows: Example #1. Zero Based Budgeting – ABC company had a budget of 500 million dollars for an acquisition project in the middle east. After two years for target screening and identification, the company could not identify an appropriate target for the acquisition in the middle east.What are some examples of rationalization in economics?
The following are examples of rationalization. Rationalization may also refer to the process of becoming calculable. For example, the introduction of certain financial models or financial technologies rationalizes markets and make them more efficient.What is the importance of effective budgeting?
Budgeting is a very important process and exercise in every organization in the world and budgeting should be looked at as of paramount importance. A budget is a tool that is used by the internal management of the company and is not often required by the external parties of the company.