Suppose a company budget falls less to mark. Which department budget should be restricted? 1.Marketing 2.Advertisement 3.Production 4.I.T 5.HR

totally depnedable upon the sitution of the business and circumstances or market

Either Review1 or Review2

Review1

Why the budget prepares?

Simply, Math firms

 Inputs i.e. Available Sources (or can be arranged)

With

 Out puts i.e.  Targets, Goals or Accomplishment

Whenever the firm facing budget restriction, there is a possibility that the budget is not properly prepared.

 Either

 The firm cannot arrange inputs (sources)

 or

 The firm outputs or targets or level of activity  

Review the whole budget process if yet you have budget constraint

Then raise inputs  by way of outsourcing or third party contract  keeping the that limiting factor of source not exceed the contribution of per unit of level of activity.

Review2

If you're going to cut your budget, it's a good idea to have a rational system for doing so. Here is a suggested step-by-step process which allows you to look at what is more and less necessary, and to make considered decisions about what you can do without and what you can't.

·         Look first at those items that aren't essential to the running of the organization.

·         Can you cut or cut down the amount of physical, tangible items you need to run the program, or cut the cost of services in some way?

·         Finally, if nothing else will serve to balance the budget, you may have to consider cutting back on whatever it is the organization does, which usually translates to dealing with the positions of paid staff.

o    Reduce the hours of one or more staff, if people are on hourly wages - for instance, consider reducing the work week from40 to37.5 hours, or even further

o    Reduce one or more positions from full to half time - keep in mind that in many organizations, this reduction would eliminate benefits for those affected

o    Ask staff to pay a larger share of their fringe benefits (if there are fringe benefits)

o    Lay off one or more staff members

If the budget allocated is less than the budget requested then one of two things have happened

1.  the budget requested has not been prepared properly to support the amount requested, in which case it is the fault of the team requesting the budget, including the head of department (CxO) for not getting it correct.   Suggestion: Go back to the beginning and reprepare the budget and ask your CFO to reconsider.  Alternatively, do the same, but ask for "Extra Ordinary Budget", to provide the shortfall.  Under this scenario, the budgeting team and the head of department need to think carefully about their employment future.

2.  the organisation does not have sufficient finances to support your budget request.  You now have to fight your corner providing all the business cases needed and showing true operational costs, together with projected costs over your five year strategic model. This should also cover confirmed earnings and potential projected earnings over the same period, together with cost savings.  None-the-less, in this situation all departments will be in the same position

But it all depends on the situation at the time, the state of the market, and finaces available.