Information System Budget

Information System needs budget for development

Budgeting

Generally budget can be seen in 2 perspectives

Underbudget:
- Considered positive as it aligns with the capitalism profit motive. Businesses aim to spend less than allocated to maximize profit.
On Budget:
- Neutral to Positive: Meeting the budget as planned is generally seen as successful. It reflects effective financial management and resource allocation without impacting profitability.

Underbudget:
- Seen as negative, as it may indicate underutilization of resources or missed opportunities to address needs.
Overbudget:
- Seen as negative because it can lead to inefficiencies and impact macroeconomic forces such as employment rate, GDP, and overall economic stability.
On Budget:
- Positive: Staying within the allocated budget is viewed favorably as it indicates effective planning and management. It supports macroeconomic stability and ensures that resources are used as intended to meet public needs.

Required: Methodologies are essential to ensure accurate cost estimation and accountability.
Purpose: These methodologies help in creating realistic budgets, managing financial resources effectively, and tracking project expenses against estimates.
Exampe: Use case Estimation