A budget is a basic tool for an event coordinator to predict the precise accuracy that an event will result in profit, loss or failure. There are two basic approaches or philosophies, when it comes to budgeting. One way it tells you in mathematical models, and another in humans. The first school of thought believes that financial models, if well-designed, can be used to predict the future. Focus on variables, input and output, drives and more. The investment of time and money is dedicated to completing these types of models, which are usually managed in a specific type of financial spreadsheet application. One school of thought holds that it's not about models, it's about people. It doesn't matter if the problem models can get any really good information from people in the business. So the focus is on engaging managers in business fully in the budget process, and building accountability for results. Companies that adhere to this approach have their own managers developing their own budgets.

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