What is the responsibility of operating budget, Managerial Accounting

Assignment Help:

What is the Responsibility of operating budget

when the operating budget of a firm is constructed in terms of responsibility areas it is called the responsibility budget shows the plan in terms of persons responsible for achieving them. It is used by the management as a control device to evaluate the performance of executives who are uncharged of various cost centers. Their performance is compared to the targets (budgets), set for them and proper action is taken for adverse results if any. The kinds of responsibility areas depend upon the size and nature of business activities and the organization structure. However responsibility areas may be classified under three broad categories:

Cost centre

Profit centre

Investment centre


Related Discussions:- What is the responsibility of operating budget

Explain the mark up pricing, Full cost or mark up pricing or cost plus pric...

Full cost or mark up pricing or cost plus pricing method: In this method the marketer estimates the total cost of producing or manufacturing the product and then adds it a mar

Homework, IF net income totaled $18,000 for one year, beginning assets were...

IF net income totaled $18,000 for one year, beginning assets were $100.000 and ending assets were $140,000, then Return on Assets for the year as a percentage will be?

Explain indirect expanses, Explain Indirect expanses: These are expanse...

Explain Indirect expanses: These are expanses which can't be directly conveniently and wholly allocated to a specific cost centres or cost units examples of such expanses are h

Industrial Grinders, accepted#Regarding the Overhead costs, these are alloc...

accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;

prepare a production budget, Mosman Ltd makes a single product. The projec...

Mosman Ltd makes a single product. The projected sales for the first month of the coming year and the starting and ending inventory data are as follows:   Sales  80,000 units Uni

Assignment, What is the fastest time financial accounting assignment can be...

What is the fastest time financial accounting assignment can be done by your company? It will be a report type format but overview type without going into depth.

Just-in time inventory management-jit production , Just-in Time (JIT) Inven...

Just-in Time (JIT) Inventory management JIT is a system whose purpose is to generate or to purchase products or components as they are required by customers or for use rather

Moore company uses process costing, Moore Company uses process costing.  Th...

Moore Company uses process costing.  The following information was available for October: During October, 1,000 units were started, and costs incurred during the month were

Net current assets forecasting method, It is the most practical way of esti...

It is the most practical way of estimating working capital needs. In such method, the finance manager gets ready a working capital forecast. While preparing such forecast, firstly

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd