What process step focuses on creating the initial projections for a budget?

The correct response highlights the "Prepare" step as the phase where initial projections for a budget are created. In the budgeting process, preparation involves gathering necessary data, assessing past budgeting performance, and estimating future costs and revenues. This stage lays the foundation for the entire budgeting exercise, as it requires careful analysis of previous expenditures, anticipated needs, and current economic conditions to formulate realistic budget projections.

In contrast, planning typically involves setting objectives and determining how to allocate resources to achieve those goals. While planning is essential, it usually follows the preparation phase, which is specifically concerned with data collection and initial estimations. The implement stage occurs after the budget has been created, focusing on execution and adherence to the planned budgetary allocations. Evaluation involves analyzing the outcomes against the budget to assess performance and effectiveness, which also happens after the budget has been established and implemented.