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Why is standard costing regarded as an essential part of budgetary control?
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6 Differentiate between Standard Costing and Budgetary Control?
Distinction Between Standard Costing And Budgetary ControlAlthough budgetary control and standard costing both are based on some common principles; both are pre-determined, comparison will be made with the actual costs and both system need a revision of the standards or the budget, these two systems have certain differences which are as follows: 1. Budgetary control deals with the operation of a department or the business as a whole in terms of revenue and expenditure. Standard costing is a system of costing which makes a comparison between standard costs of each product or service with its actual cost.2. Budgetary control covers as a whole in terms of revenue and expenditures such as purchases, sales, production, finance etc. Standard costing is related to a product and its cost only.3. Budgetary control is applicable to utmost all business organizations. Standard costing is applicable to manufacturing concerns producing standard products and services.4. Budgetary control is concerned with a specific period and is based on the totals of amounts. Standard costing is concerned with the standard costs, which are worked out generally per unit of production.5. Budgetary control is not based on standard costing system. Standard costing cannot exist in the absence of a budgetary control system.Posted Syeda Humaira Fatima
Advantages and limitations of budgetary control?
One advantage of budgetary control is the fact that managers can control spending. A disadvantage to budgetary controls is that it may limit innovation.
Define budgetary control and discuss the objectives of introducing a budgetary control system in your own organization What are the advantages and limitations of budgeting?
Methodical control of an organization's operations through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them is called Budgetary control.
The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the units performance is known as?
This budgetary unit is known as the control center.
What is the difference between budgetary control and standard costing?
Budgetary Control is projection of financial accounts and std. costing is a projection of cost accounts. Variances are shown in total in thhe former and a detailed analysis of variances is done in the latter. In std. costing, cost data ior each activity is pre-determined based on normal level of operaion.
What has the author Essien Bassey Offiong written?
Essien Bassey Offiong has written: 'Standard costing, budgeting and budgetary control in profit making commercial/industrial organisations and local government'
What is non budgetary control?
Non-Budgetary control is laying control on your non-budgeted expenses i.e those expenses which are not defined in normal budgeted expenses. The techniques for these non-budgetary control are : 1) Statistical data analysis. 2) Break-even analysis or the no profit & no-loss analysis. 3)Gantt Charts 4) PERT (Programmed Evaluation & Review Technique).
Who is responsible for budgetary control?
It's the Finance Ministry who is responsible for budgetary control. The Ministry is assisted by Finance Secretary,Central Bank, Planning Commission. But the overall responsibility is bestowned upon the Finance Ministry.
What is non-budgetary controls?
Non-Budgetary control is laying control on your non-budgeted expenses i.e those expenses which are not defined in normal budgeted expenses. The techniques for these non-budgetary control are : 1) Statistical data analysis. 2) Break-even analysis or the no profit & no-loss analysis. 3)Gantt Charts 4) PERT (Programmed Evaluation & Review Technique).
Budgetary control system?
Budgetary Control concerns itself with the total costs for each department. Each variance is the responsibility of the official who is in charge of the department in which it arises. This official must then explain the cause of the variance and take to prevent its recurrence.
Need of budgetary control?
connor is a big fart bubble (peedo) babeeey (y) ;)
How can a person learn budgetary control?
To learn Budgetary control you can visit several websites including ehow and thestudentroom. You can also seek advice from several organisations including the citizens advise bureau, which will offer straight forward impartial advice.
