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







Related Discussions:- Advantages of budgetary control, Assignment Help, Ask Question on Advantages of budgetary control, Get Answer, Expert's Help, Advantages of budgetary control Discussions

Write discussion on Advantages of budgetary control
Your posts are moderated
Related Questions
This question tested the core area of specifically gradually consolidation and acquisitions (control to control). The principle of calculation of goodwill at the date where control

Goral is required to pay five equal annual payments of Rs. 10,000 each in his deposit account that pays 10% interest per year. Find out the future value of annuity at the end of fi

Assemble all other inputs/assumptions based on the past data. Use your best judgment to have the most reasonable estimates. Tasks 1. Prepare an Excel spreadsheet containi

Briefly define the terms proprietorship , partnership , and corporation . A proprietorship is a business possessed by one person. Two or more people who unite together to

Spreads The difference between two futures price is referred to as ‘spread'. For the same underlying good, if there are two different prices on two different expiration dates, t

Specific Cost of Capital When the Cost of every source of capital is individually calculated, it is known as Specific Cost of Capital example Cost of equity, cost of debt, etc

#questThe managing directors of three profitable listed companies discussed their companies'' dividend policies at a business lunch. Company A; has deliberately paid no dividends

Explain the Role of commission authorities Competition Directorate is one of the independent public bodies which help ensure healthy competition between companies which then be

answers for the personal finance literacy 2nd edition workbook answers chapter 9(obtaining and protecting your credit)

Debt holders versus Shareholders A second agency problem arises because of potential conflict between stockholders and creditors. Creditors lend finances to the firm at rates w