Advantages of budgetary control, Financial Management

ADVANTAGES OF BUDGETARY CONTROL

1. Profits are maximizes.

2. It makes easy the controlling of activities.

3. Effective co-ordination is made achievable.

4. Executive performance is evaluated.

5. Clear-cut targets and goals are laid.

6. Economy in operations is get through planned expenses. That is., It results in reduction of cost.

7. It creates cost consciousness.

8. It makes easy availing of bank credit.

9. It avoids under / over capitalization.

10. Management by exceptions (MBE) is possible, as it identifies deviations and saves the mangers' valuable time.

11. Inefficiencies / ineffectiveness is revealed.

12. Continuous correction and monitoring of performance are done.

13. Incentive system may be introduced.

14. Unprofitable activities and products can be shut down.

Posted Date: 10/15/2012 8:07:47 AM | Location : United States







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