Pre-requisites to apply Budgetary Control
Write down the pre-requisites to apply Budgetary Control?
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The pre-requisites to apply Budgetary Control are illustrated below: - First a Budget Centre which is that segment of the organization for that the budget will be made must be clearly defined. -Budget Period or the time period for that the budget will be made and functioned must be settled on cautiously. It must neither be too long nor too short. - A well-organized and appropriate system of accounting must be set up so that the information required for the appropriate implementation for the budgetary control can be accessible on time. - An appropriate organizational chart must be prepared appropriately, clearly describing the duties and responsibilities of each level of executive. - A budget manual, a significant document in relation to the budgetary control. It must be fine written, divided and indexed into segments. It must include 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 assessed before making other functional budgets to make sure that other functional budgets are able of accomplishment.
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