Use of budgetary controls, Managerial Accounting

Assignment Help:

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.


Related Discussions:- Use of budgetary controls

Capital budgeting – planning investments, Project C would involve a current...

Project C would involve a current outlay of $50,000 on equipment and $15,000 on working capital. The investment in working capital would be increased to $21,000 at the end of the f

Explain operating budgets, Explain Operating budgets These budgets rela...

Explain Operating budgets These budgets relate to the dissimilar activities or operation of a firm the number of such budgets depends upon the size and nature of business. The

What is the significance of performance budgeting, Significance of performa...

Significance of performance budgeting Performance budgeting will help the management of companies by introduction of management objective to improve performance. Further it wi

Identify and briefly describe four trends in macro market e, identify and b...

identify and briefly describe four trends in macro market environment which influence on the selected industry?

Break even analysis, BREAK EVEN ANALYSIS Break even analysis is mainly us...

BREAK EVEN ANALYSIS Break even analysis is mainly used to explain the relationship between the cost incurred, the volume operated at and the profit earned. To compute the breakev

Explain the techniques of cvp analysis, Techniques of CVP Analysis  The...

Techniques of CVP Analysis  The CVP  analysis deals with the price costs structure and the sales volume and identifies the profit figure with one or other combination of these

Describe benchmarking, Describe Benchmarking It is the process of measu...

Describe Benchmarking It is the process of measuring products service or activities against the best level of performance which may be found either inside or outside the organi

Interpratation of variance, INTERPRATATION OF VARIANCE Controllability,...

INTERPRATATION OF VARIANCE Controllability, Materiality and Trend are the interpretation of variance. The point of comparing flexed budget and real figures is to see what corre

Assigning costs and assets , Assigning Costs and Assets After identify...

Assigning Costs and Assets After identifying its value chain, a firm must assign operating activity and assets to value activities. Operating costs must be assigned to the act

Explain variable cost and fixed cost, Explain variable cost and fixed cost ...

Explain variable cost and fixed cost Variable costs: costs that vary almost in the direct proportion to the volume of production are known as variable costs. The examples of

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