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
A family in Cambridge received their Christmas presents from friends in Paris this week – 50 days after their parcel was posted. French posties sent it to Cambodia, and the near-20

STANDARD COSTING STANDARD COSTING is a method, which uses standards for costs and revenues for the idea of control by variance analysis. It can be used either through operation

process costing new practices

A process in the industry where a wholesaler needs an amount that is the difference among the manufacturer's price to the wholesaler and the contract price to the resale customer.

The vice president of operations of six layer computer Inc. is evaluating the performance of two divisions organized as investments centers. Invested assets and condensed income st

Three oligopolists, A, B and C, produce an identical product, Q. Q is produced under conditions of constant costs, that is, AC = MC = $100. The market demand schedule for Q is:

mojor elements of cost sheet

Direct Labour Rate Variance It is the difference among the actual direct labour rate and the standard direct labour rate for the total hours worked. Utilizing an equation,

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

The income statement of Holly Enterprises shows operating revenues of $134,800, selling expenses of $38,310, general and administrative expenses of $36,990, interest expense of $58