What process is involved in the budget management cycle?

The budget management cycle involves a structured approach to effectively managing an organization's financial resources. The correct answer highlights the comprehensive steps necessary to ensure that a budget is not only developed but also executed and refined over time.

1. Plan: This initial phase involves identifying the financial needs of the organization, setting specific goals, and planning resources accordingly. It establishes the framework for the budget.

2. Prepare: This step includes gathering the necessary data, estimating costs, and drafting the budget based on the planned objectives. It involves detailed calculations and comparisons to previous budgets.

3. Implement: Once the budget is approved, it needs to be put into action. This phase ensures that the allocated resources are utilized as intended and are monitored closely during execution.

4. Monitor: Ongoing oversight is crucial. This involves tracking expenditures and revenues to ensure they align with the budget. Any discrepancies may signal the need for adjustments.

5. Evaluate: After the budget cycle is completed, organizations assess how effectively they managed their finances and achieved their goals, providing insights into performance and outcomes.

6. Revise: Finally, based on evaluations, revisions may be necessary. This allows for adjustments that can improve the budget in future cycles based