Organization of budgetary control, Cost Accounting

Assignment Help:

Organization of Budgetary Control

Budgetary control ideally includes the given steps as:

1. The creation of budget centres.

2. The introduction of sufficient accounting records.

3. The preparation of organization charts.

This explains the functional responsibilities of all member of management.

A. The establishment of a budget committee as:

It will consist of financial and operating managers, who one will be essential to review, Discuss and co-ordinate business activities. The major function of this committee includes as:

  1. To issue instructions concerning budget requirements, deadline dates for the receipt of budgets.
  2. Draw up the budget preparation timetable. It obtains the form of network analysis whereby several activities are preceded via several others.
  3. To explain the common policies of management in relation to the budget.
  4. Checking initial problems and draft considered. Limiting factors are generally considered.
  5. Ensuring about the budgets is synchronized in the boundaries of available resources.
  6. To analyze comparison of budgets and real results and to recommend corrective action whereas essential.
  7. Review of budgets.
  8. Prepare or get ready the master budget after functional budgets have been prepared.
  9. The preparation of a budget manual. It is a document that sets out the responsibilities of the persons engaged in the routing of, and the forms and records essential for budgeting control. That manual will provide such information:

- Explanation of the system and its objectives.

- Definition of the duties and responsibilities.

- Reports and statements essential for each budget period.

- Deadline dates via that data are to be submitted.


Related Discussions:- Organization of budgetary control

Accrued liabilities, Accrued liabilities show expenses or obligations incur...

Accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent period. In several cases where

Calculate the cost of capital and units of capital, The owner of the Hughes...

The owner of the Hughes Car Wash believes that the relationship between the number of cars washed and the amount of labor employed is Q = 0.8 + 4.5 L - 0.3 L2 where Q = the num

Standard costing, STANDARD COSTING STANDARD COSTING is a method, which ...

STANDARD COSTING STANDARD COSTING is a method, which uses standards for costs and revenues for the idea of control by variance analysis. It can be used either through operation

Explain how individual items of costs will be traced, Glaser Health Product...

Glaser Health Products of Ranier Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and Administrative. Purchasing, receiving, materials and product

Compute the annual depreciation on the new equipment, Goldman Corporation b...

Goldman Corporation bought a machine on June 1, 2010, for $44,838, f.o.b. the place of manufacture. Freight to the point where it was set up was $282, and $705 was expended to inst

Making variance analysis more meaningful, Making Variance Analysis More Mea...

Making Variance Analysis More Meaningful To compose variance analysis as useful aid to management is the main objective of variance calculations.  However this can only be don

Cost accounting, using relevant examples discuss the meaning and scope of c...

using relevant examples discuss the meaning and scope of cost accounting

Accounting for job order costing - direct materials, Accounting for Job Ord...

Accounting for Job Order Costing - Direct Materials Direct materials (i) Dr Stores ledger control Account Cr Cash Account - for cash purchasers              X (ii) D

Computing information, This coursework is intended to help you develop your...

This coursework is intended to help you develop your understanding of shell scripting in both a Windows and Unix environment. You should undertake this coursework in groups cons

Reconciliation of profits, Reconciliation of Profits Reconciliation of...

Reconciliation of Profits Reconciliation of profits disclosed by Financial Accounts and Costing Accounts in an interlocking system, While interlocking cost accounting system

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