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Explain the advantages of using flexible budget as part of budgetary control system?
Flexible budgets offer several advantages in a budgetary control system, primarily by allowing organizations to adjust budget estimates based on actual activity levels. This adaptability helps in better performance evaluation by facilitating comparisons between actual results and a budget that reflects current operational conditions. Additionally, flexible budgets enhance resource allocation and operational planning, as they provide a more accurate basis for decision-making. Ultimately, they enable management to respond proactively to changes in business conditions, improving financial control and operational efficiency.
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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.
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).
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
Need of budgetary control?
connor is a big fart bubble (peedo) babeeey (y) ;)
Explain the importance of budgetary control in any business?
as this quetions is related to budh«gets, I will start by explaining what a budgets is and then the importance of controlling it. A budget is a Plan which show how much money will be needed by a business and how that money will be used during a certain period. A budgetary control is process of comapring the actual expenditure with the budget amount for a certain periods. the diferences between them are called discrepancy or varinaces. Each department within a business is a llocated a budget and the concerned manager may possibly be held reponsible for any discrepancy on the budget. the discrepancy can be favourable or unfavourable but to ascertain wheter the discrepancy is favourable or not others aspects need to be taken into consideration. Budgetary control is importante in the sense that it allows to make sure that
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.
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.
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 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).
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
What are people who own and operate their own businesses and have many advantages such as variety flexible work hours and control over working conditions?
Self employed
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.
What are the advantages and disadvantages of budgetary slack?
Budgetary slack refers to the intentional underestimation of revenues or overestimation of expenses in a budget. The advantages include providing a cushion for unexpected costs and potentially improving performance evaluations if actual results exceed the slack-adjusted budget. However, disadvantages include the potential for inefficiencies, as it may lead to misallocation of resources and discourage cost control, while also fostering a culture of mistrust if stakeholders perceive the slack as manipulation. Overall, while it can offer short-term benefits, budgetary slack may undermine long-term financial discipline and transparency.
