![]() ![]() A statement regarding the objectives of the organization and how they can be achieved through budgetary control.Important Matters Covered in a Budget Manual Reporting the result and taking corrective actions.Comparing result & analysing deviations.Motivation will help them to improve their performance. The organisation should have a plan against which actual results can be progressively compared. ![]() Of different department or sub-units of the organization, this concept of co-ordination implies, for example, that the purchasing department should base its budget on production requirements, and that the production budget should, in turn, be based on sales expectations. It is necessary to have a formal system to make sure that each person is aware of what he is supposed to be doing. This is the most important feature of budgetary control because management is forced to look ahead, set targets, anticipate problems and give the organization purpose and direction, To communicate Ideas and Plans Objectives Of Budgetary Control To compel planning Advantages and Disadvantages of Budgetary Control (Table)īudgetary control is the process of comparing various actual revenues and expenditures with budgeted figures/planned income or expenditure to identify whether or not corrective action is required & for calculating variances if any.Important Matters Covered in a Budget Manual.
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