To be successful and to ensure their financial resources are properly being managed, organizations develop budgets. These planning tools allow managers to easily and quickly see how all of the organization’s resources are being allocated. A type of budget that is commonly used to manage short-term, usually less than a year, expenditures required to operate the organization is the operating budget.
In this discussion, explain the importance of operational budgets and how they are used for the planning and control of an organization. Provide a real-world business example to illustrate its use and application for financial decision-making.
Formulate a thoughtful response in 200-250 words. Include at least one reference.
