Advantages of budgeting and budgetary control There are a number of advantages to budgeting and budgetary control: The heads of all the important departments are made members of this committee. To balance the desire of large representation, a sample size of one hundred representing the population was drawn from the various departments in the assembly.
Examples of the importance of results are easily found. Lastly, management will focus on how they tried to correct the problem operations and develop a plan to fix them in the next period.
Previous studies on the roles of accounting information and budgetary control measures have been more focused on profit organizations Davilla, , or on health care organizations Abernethy and Brownell, .
A budget manual is a document which spells out the duties and also the responsibilities of various executives concerned with the budgets.
The study employed the quantitative survey approach in the gathering and analysis of the field data which was analysed using quantitative techniques to produce tables with their accompanying interpretations.
If at any time there is a lack of support from top management then this system will collapse. Every part of the organisation should be represented on the committee, so there should be a representative from sales, production, marketing and so on.
Budgeting Budgeting refers to the process of preparation, implementation and operation of budgets. The budget period depends upon the following considerations: Introduction According to Amoako-Gyampah and Acquaah, , results are important for Ghanaian local governmental organizations.
Units responsible for the preparation of budgets. Every departmental head worries for his department goals without thinking of business goal. The appraisal performance of different parts of the organization becomes easy when different centres are established.
The budgets of different departments have a bearing on one another. Every concern cannot afford to appoint a Budgetary Officer. Third, after the comparison has been made, managers need to improve the under performing operations and continue to strengthen the favorable ones.
The budget also serves as a yardstick or benchmark for controlling on-going operations. Control is provided by comparisons of actual results against budget plan.
The budget officer will be able to carry out his work fully well only if he is conversant with the working of all the departments. By Budgeting and budgetary control targets for the employees, they are made conscious of their responsibility.
The change in future conditions upsets the budgets which have to be prepared on the basis of certain assumptions. Waste may also arise as managers adopt the view, "we had better spent or we will lose it". Despite of many good points of budgetary control there are some limitations of this system.Budget, Budgeting, Budgetary Control A budget is a financial and quantitative statement of an operational plan related to a specific time period, which is to be followed during the budgeted period in order to achieve specific financial objectives of an organization.
planning and control process, and how the process is to be conducted • a budget committee, which organises the process of budgetary planning and control; this committee brings together representatives from the main functions of the business –.
ADVANTAGES OF BUDGETARY CONTROL • • • • • • The major strength of budgeting is that it coordinates activities across departments. Budgets translate strategic plans into action. They specify the resources, revenues, and activities required to carry out the strategic plan for the coming year.
The Impact of Budgeting and Budgetary Control on the Performance of Manufacturing Company in Nigeria This study, the impact of budgeting and budgetary control on the performance of manufacturing company in Nigeria, was conducted using Cadbury Nigeria Plc, as case study.
About the Programme. All organisations need to manage performance so that their financial and strategic objectives are achieved and management and financial stakeholders can be confident in the associated control processes.Download