A budget is a detailed sequential outline for using limited resources. It seeks to: plan the way to achieve long-term goals through short-term actions, communicate the decisions for short-term actions in one shared document, coordinate activities among different departments within the firm, measure achievement of the short-term goals, and so control departments, product lines, and employees. What is the first type of budget an organization preparesoperating or financialand why? What are the two basic steps (the first two, in fact) of developing this budget and how do they lead to the preparation of the budgeted income statement?