1.3.1 HR Budgeting Process

Question 1

What are the three major purposes of a budget?

Answer 1

• Coordination and integration
• Motivation
• Control and evaluation

Question 2

What is a budget?

Answer 2

an itemized estimate of operating cost of a company for a future time period

Question 3

What is the difference between a budget and a financial statement?

Answer 3

a budget is based on planned operations for a future time period, while a financial statement are based on actual results of past operations

Question 4

When is the budget under the control of the HR departement?

Answer 4

When the HR department is responsible for the activity