Notes

------------------------------------------------- Budgeting and figureary control A calculate is a away financial object. It provides a prediction of judge flows of money in and emerge of the firm in the immediate future. Normally, a budget testament be prepared in advance of a extent of metre, usually a year but could be on a monthly or quarterly stem Budgets are cadaverous up for a number of reasons at bottom a firm. very much the process of producing a budget will take a significant amount of time. Producing budgets on a regular basis, for a large office of the activities of the seam will process with the chase: Functions of budgets * Planning Budgeting forces managers to plan, and therefore consider, resource future courses of action, to evaluate them properly and to subside on the outstrip alternative. It also encourages managers to anticipate problems before they arise, consequently giving themselves time to consider alternative ways of overcomi ng them when they do happen, and to prepare for set (even simple course of action such as prearranging a bank overdraft will be feasible as part of the budgeting process). Budgeting tends to produce better results than decisions made on the spot. * Co-ordination Without a full agreement of budgetary control, managers of different functions within the firm (i.e.

sales, production, pay, etc) may put up decisions about the future which are in conflict with separatewise departments. For example, the sales department may plan an advertising streamlet to boost sales to a appoint beyond the productive capacity of the firm, or without the necessary finance A s! et up budgetary system will help ensure that actions by the different departments and the different people refer (budget holders or budget managers) will not be interpreted without ensuring that it fits in with other plans. * Control Comparisons of budgeted data and the actual data (when it occurs) is a routine known as variance analysis. Comparing what was expected (the...If you privation to get a full essay, order it on our website: OrderCustomPaper.com

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