Abstract
Budgeting is a mandatory yet misunderstood function in most organizations because of its current focus on estimating revenues and expenses. A budget should be a roadmap specifying in dollars and cents organizational goals and how management performance will be assessed. Like a roadmap, its value is entirely dependent on whether the plan is followed. Improving treatment and controlling costs require implementing budgets that focus managers' attention on the elements of production systems that they control and lead directly to better results. The choice between using an incremental, flexible, zero-base, program, or activity-based budget to chart the desired path of departments and organizations should be made in light of organizational goals and the role of the manager within the organization.