Why does a business need to control costs and manage a budget?

any ideas thanks :)Why does a business need to control costs and manage a budget?
There is a lot of requirements to make a certain amount of profit. There are bank requirement, stockholder requirements, and it can even affect relationships with vendors and customers. To keep the profits at a proper level, you need to control costs. To control costs, you have to have


management over the costs with good information to the one spending it. Because it is difficult to see the whole picture, it is easiest to give a budget to each area that spends money. This gives them a target and requires explanation of a variance.Why does a business need to control costs and manage a budget?
so they don't go bust?
so they can make a profit instead of going in the red....
Bottom line baby!
It's all about planning and predicting the future.





Controlling costs is part of budgeting and the total sales, minus the costs gives you the profit.





If you hit your sales targets and keep to your budget, you should make the profit you originally estimated.
It wouldn't be a business if you didn't.





That is what business means *Making money*. It means manageing costs.
because there are certain laws and regulations a corporation has to respect and also the corporation has to pay certain tax to the government


if it does not control the cost there will be no profit, then what will happen with the investment and shareholders will have loses


nobody invest in a business endless that is why there it has to be a budget, managed one
You need to control the cost of your business so that costs will not exceed your revenues. In short, controlling cost is simply preventing you from losing your business(bankruptcy). Managing your budget is a must in every business. Why? Basically its for allocation of your resources to maximize efficiency and profits of your business and prevention of possible losses.
So that they will not overspend. They need a budget just to save and not go into debt.
in this aspect a business is no different from in individual.


the end product of not curbing spending is debt and bankruptcy!