Final answer:
Each responsibility center in an organization has a budget as its financial plan. Budgets detail expected revenue and expenses, and fluctuate with policy decisions and unexpected events. Having a budget ensures income covers expenses.
Step-by-step explanation:
Each responsibility center in an organization typically has a budget as its financial plan for the revenues and resources needed to carry out its tasks and meet its financial goals. A budget reflects an organization's policy goals and priorities for the fiscal year, detailing expected receipts from taxes and other revenue sources, as well as expenditures the government or organization anticipates. Having a budget is essential, as it assists in ensuring that there is sufficient income every month to cover expenses, and it requires careful management to adhere to it.
Moreover, budgets at all levels of government—federal, state, and local—demonstrate how revenue is projected and spending is allocated. However, these can change significantly over time due to policy decisions and unforeseen events that may disrupt the planned tax and spending patterns established in the initial budget.