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Explain the techniques of performance budgeting
It will also be useful to examine the three major aspects of this technique:
Structural aspects: the structural aspects involve the development of suitable classification of functions programmer and activities.
Analytical aspects: the analysis aspects of performance budgeting will identify the alternative programmer and activities on the basis of cost benefit analysis. Then the annual budgets can be prepared incarnating the activities on the basis of priorities
Information aspects: the informational aspects of performance budgets implementation of the budget control and appraisal of achievements.
Anthony''s orchard
Advantages of zero base budgeting 1) it provides a basis for evaluating decision packages on the basis of benefit considerations 2) it reduces inefficiency and achieves high
REGRESSION ANALYSIS A regression equation identifies an estimated relationship between a dependent variable (the cost) and one or more independent variables (the cost driver).
Ageing Schedule: AS is classifies outstanding accounts receivable at a specified point of time into various age brackets. A clarifying ageing schedule is specified below.
Computation of Working Capital Required 1. Operating Cycle Period = M+W+F+D-C = 101.38 +2
Improvement in product design may result in cost reduction illustrated below: 1) Material cost : change in design of the product may result in saving in material cost. Economi
Activity Based costing and Functional Based Costing compare them together in terms of efficiency, advantages, disadvantages and accuracy.
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
Working Capital management is affected through two characteristics of current assets that are as follows (i) short life span (ii) swift transformation in the other asset forms.
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