Why is it important to circulate budgets and ensure managers and supervisors are clear about budgets, reporting requirements and financial delegations?

Answer:

CIMA Official terminology has defined the terms budget as "Quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues ; resource quantities ,costs and expenses ;assets ,liabilities,and cashflows."

A budget act as a buisness barometer

Budget is constant endeavour of the management

It is important to circulate budgets and ensure managers and supervisors are clear about budgets because,budget reflect plans and the planning should have taken place before budgets are prepared.Using the budget to communicate these expectation throughout the organisation has helped many a companies to reduce expenses during a severe  buisness recession.It helps to motivate employees to attain goals but also improves overall decision making.It helps to direct and co ordinate buisness activities and units to achieve stated targets of perfomance.The budgetary units are called responsibility centers.Each responsibility centers are controlled by by a manager.Objectives and degree of perfomance expected from responsibility centers are communicated rapidly.

As time passes,the actuall perfomance of an operation can be compared against the planned targets. This provide prompt feedback to employees about their perfomance . Any unexpected changes into the condition which were prevailing at the time of prparing budget re also communicated.