Objectives of budgetary planning, Cost Accounting

Assignment Help:

Objectives of Budgetary Planning

1) Coordination

The budgetary process needs that visible detailed budgets are developed to cover every activity, function or department in the organization. It is only possible whereas the effort of one department's budget is concerned to the budget of another department. In this way, coordination of activities, department and function is achieved.

2) Communication

The full budgeting process includes liaison and discussion with all levels of management. Both horizontal and vertical communication is essential to ensure suitable coordination of activities.

3) Control

This is the process for comparing real results along with the budgeted results and reporting upon variances. Budgets set a control gauge that assists to accomplish the plans set in agreed expenditure limits.

4) Motivation

Budgets may be observed as a bargaining process whether managers compete along with each other for scarce resources. Budges set targets that have to be achieved. Where budgetary targets are tightly set, several individuals will be positively motivated towards achieving them.

5) Clarification of Responsibility and Authority

Budgetary process necessitates the organization of a business into responsibility and budget centers along with clear lines of responsibilities of each manager. This decreases duplication of efforts.

6) Planning

It is via Budgetary Planning that long-term plans are place into action. Planning includes determination of objectives to be attained at a future predetermined time. Whereas monetary values are attached to plans they become budgets.


Related Discussions:- Objectives of budgetary planning

Calculate the yield to maturity of the bond, 7. The Isabelle Corporation re...

7. The Isabelle Corporation rents prom dresses in its stores across the southern United States. It has just issued a five-year, zero-coupon corporate bond at a price of $74. You ha

Estimating the number of shares with returns less, The file A1Q1 contains d...

The file A1Q1 contains data for the percentage change in the price of 50 shares selected at random from the Australian Stock Exchange. The data refer to the percentage change in th

Cost-plus pricing, Computation of mark up and Target selling price in cost-...

Computation of mark up and Target selling price in cost-minus pricin

Variable cost, how variable cost help in decision making.with suitable exam...

how variable cost help in decision making.with suitable example

Calculate cost or equivalent units, Calculate Cost or Equivalent Units ...

Calculate Cost or Equivalent Units The given work in progress account concerns to the blending department of a company, a soft-drinks company for the month of January in 1999

Provision for bad and doubtful debts, A provision must be made in advance f...

A provision must be made in advance for those debts whose recovery is uncertain and to writing off bad debts. Each enterprise, depends on their past experience, make a provision fo

Cash Budgeting, Stopover industries ltd, a recently incorporated company pl...

Stopover industries ltd, a recently incorporated company plans to go into production next year. the following standard cost matrix has been assembled for one of the products it pro

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