- This topic has 5 replies, 2 voices, and was last updated 6 years ago by John Moffat.
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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
It 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.
Yeah..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
As 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.
Hmmmm…now it is clear…thanks a lot john sir thnks a lot!
You are welcome 🙂