Question

Jim, the radiology department director, believes the annual operating budgeting process is a tool used to increase his department through the addition of staff and supplies. Susan, the laboratory department director, believes the annual operating budgeting process is a tool used to control costs. Dr. Smith, the emergency department director, considers the budgeting process a nuisance and believes he should simply increase all revenues and expenses by 5% for the coming year to achieve a budget. Whose viewpoint represents the proper objective for the budgeting process

Answer 1

Susan's view

Step-by-step explanation:

Budgeting ins the process by which a business allocates it's resources to achieve its set goals and objectives. It is formulated to ensure various processes run smoothly while maximising scarce resources.

In the given scenario Susan, the laboratory department director, believes the annual operating budgeting process is a tool used to control costs.

This is the best description of budgeting. Funds to run the operations of the laboratory are limited. So effective budgeting is used to ensure allocation in such a way that cost is well managed.

On the other hand Jim feels budgeting is used to increase his staff and supplies, Dr. Smith feels budgeting is a nuisance.

These views are wrong