Advantages of budgetary control, Financial Management

Assignment Help:

ADVANTAGES OF BUDGETARY CONTROL

1. Profits are maximizes.

2. It makes easy the controlling of activities.

3. Effective co-ordination is made achievable.

4. Executive performance is evaluated.

5. Clear-cut targets and goals are laid.

6. Economy in operations is get through planned expenses. That is., It results in reduction of cost.

7. It creates cost consciousness.

8. It makes easy availing of bank credit.

9. It avoids under / over capitalization.

10. Management by exceptions (MBE) is possible, as it identifies deviations and saves the mangers' valuable time.

11. Inefficiencies / ineffectiveness is revealed.

12. Continuous correction and monitoring of performance are done.

13. Incentive system may be introduced.

14. Unprofitable activities and products can be shut down.


Related Discussions:- Advantages of budgetary control

Limitations of the cash flow yield measure, Bond's potential re...

Bond's potential returns are calculated using measures like Yield to Maturity (YTM) and cash flow yield. Both these measures are not free from s

Conversion ratio, It is the number that tells how many common stock...

It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over

Riskiness of portfolios b/w riskiness of individual asset, Why does the ris...

Why does the riskiness of portfolios have to be looked at differently than the riskiness of individual assets? The riskiness of portfolios has to be seemed to be at differently

Illustrate the term structure of interest rates, Illustrate the term struct...

Illustrate the term structure of interest rates? The term structure of interest rates: The term to maturity affects the interest rate. Bonds along with identical risk may

MIS, evaluation and maintenance of MIS

evaluation and maintenance of MIS

Outsourcing, Outsourcing Outsourcing is referring to purchase of parts ...

Outsourcing Outsourcing is referring to purchase of parts from outside suppliers. Outsourcing is the external acquisition of services or components used in the production of go

What is the modigliani-miller''s irrelevance hypothesis, What is the Modigl...

What is the Modigliani-Miller's irrelevance hypothesis in dividend decision making? Critically evaluate its assumption.

Define the term- cost of capital, Define the term- Cost of capital Cost...

Define the term- Cost of capital Cost of capital is the rate of return a firm should earn on its investments for the market value of the firm to remain unchanged. Acceptance of

Introduction to mortgage-backed securities, A mortgage may be defined as a ...

A mortgage may be defined as a pledge of property to secure payment of a debt. Depending upon the terms of mortgage agreed upon between the lender and the borrower, mor

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