Fundamentals of Management, 8th ed

Nonmonetary Budget

Planned Operations in Nonfinancial Terms

Labor budget

Hours of direct labor available for use

Space budget

Square feet or meters of space available for

various functions

Organizations use

various types of

budgets to help

manage their control

functions. The three

major categories of

budgets are finan-

cial, operating, and

nonmonetary. There

are several different

types of budgets in

each category. To be

most effective, each

budget must be

carefully matched

with the specific

function being

controlled.

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Part 5: Controlling

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overall budget for the organization, as well as specific budgets for each operating unit.

These decisions are then communicated back to each manager.