So an organization can be divided into four levels for our purpose, for example, 1) Executive level, 2) Higher management level, 3) Middle Management level, 4) Supervisory or lower management level. Setting targets is not a unidirectional process. First Executive level people decide the broader aspect of their policies based on shared vision, mission and objectives of company. Role of higher management is very crucial in this process. They are the link between middle management and supervisory level to executive level. They need to understand the situation at bottom level and communicate to executive level. Budgets can be decided based on their understanding. Middle and junior level managers are the real executioners and very crucial for successful budgeting. They are the one who needs to communicate exact scenario to policy makers. Usually operational budget is decided by their feedbacks. Financial budget is the cost to acquire resources to fulfil operational targets. These resources are both human and production resources.