Limitations of bugetary control

Answer 1

The objective of management accounting is to help managers achieve the missions and strategies established for their enterprise. It is a branch of accounting that provides financial and other information to managers. A key role for management Accountants is to establish the control systems used to achieve organizational goals and minimize risks. One of the most important of these is budgetary control, a powerful tool that encourages planning, sets milestones, evaluates performance and suggests paths for improvement. Management accountants also develop information systems that communicate strategic and operational priorities to managerial decision makers.

The objective of this course is to help participants better understand the role and functioning of the budget control and to situate it within the larger context of management control.

Using knowledge already acquired in earlier levels of the MBA program, this course will permit students to acquire knowledge on :

- the utility and functioning of a budget control process;

- the design of the budgetary control system as a function of the organizational strategy;

- the determination of cost behavior;

- the use of budgets to manage revenues, costs and profits;

- the relationship between management control and organizational structure;

- the organization of financial information in a comprehensible, flexible, accessible and useful form to empower decision making;

- the evaluation of performance for different administrative units within the organizational structure;

- the development and use of non financial performance measures.

BY RAMAN GOEL