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

Determine the nature of accounting, The Nature of Accounting Accounti...

The Nature of Accounting Accounting is process of recording, analyzing, summarizing, and interpreting financial (money-related) activities to allow individuals as well as org

Strategy, explain strategy asa an organisational process

explain strategy asa an organisational process

Time series analysis, Conduct a time series analysis base on the three year...

Conduct a time series analysis base on the three years accounting ratios

Describe the principles of cost accounting, Describe the Principles of cost...

Describe the Principles of cost accounting Principles of cost accounting: The fundamental principles of costing are identical and are given below:   1. Cost is related to

Queuing theory, QUEUING THEORY When limited facilities fail/delays to s...

QUEUING THEORY When limited facilities fail/delays to satisfy demands made upon them, problems occur which generate queues or waiting lines. Illustrations are: •    Customers

Suppliers line of credit, In this scheme, non-revolving line of credit is e...

In this scheme, non-revolving line of credit is extended to the seller to be utilized inside a stipulated period. Assistance is provided to manufactures for promoting sale of their

Budgets, Budgets An essential planning component is budgeting. Budgets ...

Budgets An essential planning component is budgeting. Budgets sketch the financial plans for an organization. There are number of budget types. Operating Budgets -- A plan

Determine the zero bases budgeting according to leonard mere, Determine the...

Determine the Zero bases budgeting According to Leonard mere According to Leonard mere,  ZBB is a technique which complements and links the existing planning budgeting and revi

Cost anlysis, briefly discuss five characteristics of relevant cost

briefly discuss five characteristics of relevant cost

Production during the period, Coolidge Company estimates that its productio...

Coolidge Company estimates that its production workers will work 125,000 direct labor hours during the upcoming period and that overhead costs will amount to $500,000. What predete

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