Use of budgetary controls, Managerial Accounting

Use of Budgetary controls

Budgetary controls are used for the following reasons:

1) To state the objectives of the organization as a whole.

2) To reveal the extent by which actual results have exceeded or fallen short of the budget.

3) Budgetary control helps in indicating why actual results differ from the budgeted results.

4) It is important as a basis for the revision of the current budget or the preparation of future budgets.

5) To ensure that resources are used as efficiently as possible.

6) To see how well the activities of the organization have been co-ordinated

7) To provide some central control especially where activities are decentralized.

Posted Date: 12/7/2012 7:57:20 AM | Location : United States







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

Write discussion on Use of budgetary controls
Your posts are moderated
Related Questions
Interpretation of equity ratio As equity ratio show the relationship of owner funds to total assets higher the ratio or the share of the shareholders in the total capital of th

Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi

Accounting Profit is a company's sum total earnings, computed according to Generally Accepted Accounting Principles (GAAP), and involves the explicit costs of operating business, l

What is  Scientific standards and Variance analysis The important steps of standard costing as described above may be summarized as follows; 1) Scientific standards: stand

Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d

The management of Popular Stores Sdn. Bhd. are in the process of exploring the company’s investment opportunities.

Gather data concerning the relationship among the dependent and independent variables Collecting data is generally the most hard and time-consuming element of CER development.

Zero-Base Budgeting Zero-Base Budgeting (ZBB) was first developed and introduced for business by Peter A. Pyhrr. From this starting ZBB has been explored and adopted by many o

Types of Costs In short run, costs can be of three general kinds: Fixed Cost: Total fixed costs stay constant as volume differs in the relevant range of production. Fixe

The case of variable quantity discounts In practice, suppliers may offer different discounts for different quantities purchased. For illustration:    Segment        Quantity