budgetary control system

Benefits of Distance Education and Learning from Home

Usefulness and the problems associated with master budget.



A master budget is projected financial plan. It displays the consolidation of the functional budgets to present the overall impact of the projected operational activities on the profitability  of the organization as whole. It is a statement showing the estimation of revenue, costs and profit (loss) for the organization during the budget period.

The following

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Budget Key Factor – all you need to know

A budget key factor or principal budget factor is described by the CIMA London terminology as: “a factor which will limit the activities of an undertaking and which is taken into account in preparing budgets”. The limiting factor is usually the level of demand for the products or services of the undertaking but it could be a shortage of one … Read the rest

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plant Utilization Budget – meaning

Plant Utilization Budget is budget  prepared for the estimation of plant capacity to meet the budgeted production during the budgeted period. It is a forecast of plant capacities available for fulfilling production requirements as specified in the production budget. This budget is expressed in working hours or other convenient units.



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7 key issues that should be covered in partnership agreement

Budgetary slack concept and its application in responsibility accounting.

Budgetary slack is the process by which managers seeks to obtain budget targets that can easily be achieved by understating revenues and/or overstating costs.

BUDGETARY SLACK CONCEPT AND ITS APPLICATION IN RESPONSIBILITY ACCOUNTING

The following are ways in which budgetary slack arise:

manager avoid risky but profitable projects



managers negotiate for lower targets

managers dispute performance assessment results… Read the rest

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4 advantages of using a cash budget as management control tool.

Cash budget is the budget which present expected cash inflow and outflow of the entity for the designated time period. Cash budget is prepared for purpose of cash planning and control.

The following are advantages of using a cash budget as management control tool:



Cash budget help to determine whether cash balance remain sufficient to … Read the rest