Most every firm has a budget. In many cases, however,


Most every firm has a budget.  In many cases, however, firms use them inappropriately.  In extreme cases, the way the budget is used by the firm might actually encourage incorrect decisions.  In this discussion, you will get a better feel for how to appropriately use budgets as a guide.

Explain why budgeting is important for a firm.  Do you think that a firm’s budget should ever be violated (exceeded)?  Explain your rationale.

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