Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Budgeting
- This topic has 5 replies, 2 voices, and was last updated 7 years ago by John Moffat.
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- April 25, 2016 at 6:52 pm #312655
Hi john sir…
John sir i could’t understand that how value for money makes difficult budgeting in not for profit organization..i’ll thankful to u if u explain it with skme example
April 26, 2016 at 6:29 pm #312768It is not really that VFM makes budgeting difficult but that it is always difficult for a not for profit organization – mainly because they have multiple objectives.
April 26, 2016 at 7:06 pm #312780Yeah..but how economy efficiency and effectivness makes difficult budgeting in not for profit organization..not for profit organization would have multiple objectives bt why value for money makes budgetibg dificult in not for profit..not so much clear
April 28, 2016 at 11:44 am #312925As I wrote before, it is not really that VFM itself makes budgeting difficult. But whereas a profit earning business is primarily budgeting on the profit figures, a not-for-profit business (such as state hospitals) are not budgeting for profit and have to budget on saving money but at the same time improving/maintaining effectiveness. These two tend to conflict and it means striking a balance – that is where the main difficulty lies.
April 28, 2016 at 9:29 pm #312989Hmmmm…now it is clear…thanks a lot john sir thnks a lot!
April 29, 2016 at 8:31 am #313013You are welcome 🙂
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