The Monetary Unit Can Be Made Uniform

With the monetary unit can be made ​​uniform all these different units, making it possible to sum, compared and analyzed further.

Monetary Unit For Company's Activities

Monetary unit is required by each company's diverse activities often have a unity of different units, such as raw materials using weight units (kilograms, etc.), the length unit (meters, etc.) while using union labor working hours or the unity of time (daily, weekly, monthly, etc.).

Budget Expressed In Monetary Form

Some elements of the other budget terms are expressed in monetary form, the unit that can be applied to a variety of activities are diverse-range of companies. The monetary unit of force in America is the "dollar"

Disrupt The Activities

If the budget does not cover all activities of the company, will disrupt the smooth running of the company later on, which means also to disrupt the activities to realize the budget itself.

Budget As Guidelines

Budget is a plan which will serve as guidelines, as a means of coordinating work and supervision tools work, but if there is some activity from companies that are not planned (not included in the budget) means that there are some of the activities of companies that do not have the guidance and direction of work .

Budget Covers All Activities

One element of the sense of a budget that covers all activities of the company that includes all activities to be undertaken by all the parts that exist within the company. Broadly speaking activities (functions) company can be classified into five groups, namely:
1. marketing activities
2. production activities
3. spending activities
4. administrative activities
5. activities related to personnel issues

Comparing The Plan With Realization

By comparing between what is contained in the plan with the realization that the work has been done, then the company can assess whether the company has worked with successful or less successful.
By comparing the work plan with the realization of company's work, it can also unknown what factors are the cause of the deviation (difference) between the realization of the work with a work plan that has been outlined previously.

Why Must Be Comparing The Work Plan With The Realization

By comparing the work plan with the realization of company's work, it can also unknown what factors are the cause of the deviation (difference) between the realization of the work with a work plan that has been outlined previously.

Comparing The Plan With Realization

By comparing between what is contained in the plan with the realization that the work has been done, then the company can assess whether the company has worked with successful or less successful.

The Plan As A Means Of Supervising The Implementation

The plan required by the company as a means of supervising the implementation (realization) of the plan in the future. With the existence of a plan, then the company has a benchmark to assess (evaluate) the realization of the activities of the company later.

Coordinating The Plan

Therefore be used as a means of coordinating the plan, then it should be if the plan is structured in such a way as to provide load-balanced activity between the one with the other parts of the company, according to the capacity and capabilities of each. Thus there will not be a part of the load is too heavy, the opposite is also so there is not a part of a given load is too light.

Plans As A Means of Coordinating The Activity

Plans required by the company as a means of coordinating the activities of all the parts that exist within the company. With the existence of a plan, then the activities of all parts of the company will support each other, shoulder to shoulder together toward the targets. Without a plan, undoubtedly lack of coordination and cooperation among each part of the company, so it would greatly disturb the smooth running of the company later.

Without A Plan, The Company Will Be Is Uncertain

Without a plan, surely the way the company will be is uncertain, because there is no clear guidance about what activities to do and where such activities are directed.
Hence the plan of work serve as a guide, then it should be if the plan drawn up in a systematic, detailed, clear and not cause a variety of interpretations, as well as allowing to be carried out (not too far-fetched).

Plans of The Company As Working Guidelines

Plans required by the company as working guidelines in the future. With the plan means there is a hold on what will be done later, so the running of the company more focused toward the target (destination) company that has been established.

The Future Is Full of Alternative Choices

The future is full of alternative choices, so companies must prepare themselves since the beginning, Which alternative will be chosen later. Various alternative choices such as whether the company will produce long-sleeved shirts or short sleeve shirts, or clothing or clothing waita young boys or girls clothes and so on.

How Important The Companies Should Prepare Themselves

The future full of uncertainty, so companies should prepare themselves since the beginning of what will be done later. Various uncertainties such as whether the competition will be more severe or not, whether the state will prices increased by it or not, whether the availability of raw materials on the market quite a lot or not, whether skilled manpower in accordance with what is expected by the company or not, and so on.

The Reasons of Company To Draw Up Plans

Some of the reasons which prompted the company to draw up plans to deal with the future, include:
1. the future full of uncertainty
2. the future is full of alternative choices
3. plans required by the company as working guidelines in the future
4. plans required by the company as a means of coordinating the activities of all the parts that exist within the company
5. plan required the company as a means of supervising the implementation (realization) of the plan at the time will come

The Example of Plans of Company That Don't Include Budget

Plans of companies that do not include budget for example:
1. plans regarding the use of the institutions distribution channel that will come (agents, wholesalers, small traders, and so on)
2. plans about the media campaign that will be used later (advertisers, publicity, sales promotion, and etc.)
3. plans about the model, shape or design of the product to be produced, and so on.

Budget is only one part only of the company's plans

Budget is only one part only of the company's plans, because there are still companies that plan not included in the budget, because it had no specific specifications such as budget.

Specifications of Budget

Budget is a plan that has specific specifications, such as systematically arranged, covers all activities of the company, expressed in monetary units.

Budget Is A Plan

Budget is a plan, because the budget is the first determination of the activities of companies in time will come.

The Meaning of Plan

The plan is a first determination of the activity or activities to be conducted in the future.

Business Budget

What is meant by Business Budget is a plan drawn up systematically, which covers all activities of the company, which is expressed in units (unity) monetary and valid for a period of time (period) certain to come.
From the definition above, can be interpreted that the Budget has 4 (four) elements,namely:
1. plan
2. Covering all the company's activities
3. Expressed in monetary units
4. Certain period of time to come.