--%>
Assignment Help - homework help

Function of budgetary control play in cost control

Describe the function of budgetary control play in cost control? And also write down the requirements for its triumphant execution?

E

Expert

Verified

Budgetary Control is institution of budgets and the incessant contrast of real results with the intended results. It measures the variances and after that management takes essential actions to maintain favorable variations, throughout revision of the budgets.

The requirements for the triumphant execution of Budgetary Control are illustrated below:

- Foremost a Budget Centre which is that segment of the organization for which the budget will be made must be clearly stated.

- Time period or the budget period for which the budget will be made and functioned must be decided cautiously. It must neither be too long nor too short.

-A well-organized and appropriate system of accounting must be recognized so that the information vital for the appropriate execution for the budgetary control can be accessible on time.

-An appropriate organizational chart must be made appropriately, clearly representing the duties and responsibilities of each level of executive.

-A budget manual, a vital document in relation to the budgetary control. It must be well written, divided and indexed in segments. It must consist of objectives and principles of budgetary control, responsibilities and duties of each executive in the organization, budget diagrams, accounts codes, and so forth.

-A budget key factor must be charged before made other useful budgets to make sure that other functional budgets are able of accomplishment.

   Related Questions in Financial Accounting

  • Q : Backward and forward internalization

    Discuss and compare the backward vs. forward internalization.

    		•
  • Q : Calculating Average Cost 1 You're

    1 You're trying to save to buy a new $200,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 2 Although appealing

    		•
  • Q : Find the expected dividend for each of

    Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.

    Q : Forecast future and forward exchange

    It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?

    		•
  • Q : International and financial management

    Explain, how international financial management is different from the domestic financial management?

    		•
  • Q : Depriciation techniques What are the

    What are the merits and demerits of the techniques shown below of depreciation? • Straight line process • Reducing balance process• Revaluation process • Usage process &b

    		•
  • Q : Motivations for counterparty to enter

    Specify the basic motivations for the counterparty to enter into the currency swap.

    		•
  • Q : What is Offshore banking center What is

    What is offshore banking center?

    		•
  • Q : Case study of a global economy The

    The economic recovery is seemingly on track and in fact strengthened during the first half of 2010. The global financial market however, suffered a setback with the turmoil in sovereign debt markets leading to sharp currency movements. The extent of recovery varies ac

    		•
  • Q : Accountancy Accountancy is the process

    Accountancy is the process of communicating financial information about a business entity to users such as shareholder and manager. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in s

    		•