Budgetary Slack and Other Budget Concepts.

In recent years, budgets have become widely accepted as a key element in the organization's financial system. Budgets of some type are used in most organizations.

Required:

a. Briefly define budget. Identify and discuss the major purposes of budgets.

b. Discuss the effect of the budgeting process on the organization and its individual members. The following should provide guidance in preparing your answer.

LO.1