Organization of budgetary control, Cost Accounting

Organization of Budgetary Control

Budgetary control ideally includes the given steps as:

1. The creation of budget centres.

2. The introduction of sufficient accounting records.

3. The preparation of organization charts.

This explains the functional responsibilities of all member of management.

A. The establishment of a budget committee as:

It will consist of financial and operating managers, who one will be essential to review, Discuss and co-ordinate business activities. The major function of this committee includes as:

  1. To issue instructions concerning budget requirements, deadline dates for the receipt of budgets.
  2. Draw up the budget preparation timetable. It obtains the form of network analysis whereby several activities are preceded via several others.
  3. To explain the common policies of management in relation to the budget.
  4. Checking initial problems and draft considered. Limiting factors are generally considered.
  5. Ensuring about the budgets is synchronized in the boundaries of available resources.
  6. To analyze comparison of budgets and real results and to recommend corrective action whereas essential.
  7. Review of budgets.
  8. Prepare or get ready the master budget after functional budgets have been prepared.
  9. The preparation of a budget manual. It is a document that sets out the responsibilities of the persons engaged in the routing of, and the forms and records essential for budgeting control. That manual will provide such information:

- Explanation of the system and its objectives.

- Definition of the duties and responsibilities.

- Reports and statements essential for each budget period.

- Deadline dates via that data are to be submitted.

Posted Date: 2/7/2013 3:13:44 AM | Location : United States







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

Write discussion on Organization of budgetary control
Your posts are moderated
Related Questions

Required Ledgers in Financial System In the financial Systems the Required ledgers are as: The General Ledger Debtors Ledger Creditors Ledger

MARGINAL COSTING AND DIFFERENTIAL COSTING 1.     Differential costing can be used both in case of marginal costing and absorption costing. 2.     In case of marginal costing

A local delivery company has purchased a delivery truck for $15,000.  The truck will be depreciated under MACRS as a five year property.  The trucks market value (salvage value)

can you guys do a project which is due in 2 weeks

a company has the budget for manufacturing overhead based on direct labor hours. budgeting at 10,000 direct labor hours are as follows. Variable costs= 160000 Fixed Costs

Marvin's Motors Company (MMC) manufactures outboard motors for use on small to medium sized boats. MMC produces three models: the Standard, the Deluxe and the Performance. The comp


PROFIT VARIANCES Sales variances are important as they have a direct bearing on profits earned by the organization.   thus, they can be used as the basis of determining profit

Unrecaptured Sec. 1250 Gain and 1231. Mr. Briggs purchased an apartment complex on January 10, 2011, for $2 million with 10% of the price allocated to land. He sells the complex on