What are the purposes and process of budgeting?

In this section, I will introduce the many purposes that budgets happen to serve within organizations. These functions are extremely important as they orient and support resource acquisition, allocation, and utilization. This importance justifies to a large extent the vast amount of time and resources that organizations invest in the budgeting process itself. This multiplicity of sometimes conflicting functions and the cost of budgeting are also the roots of the criticisms we will address later.