Notes

------------------------------------------------- Budgeting and calculateary control A budget is a onward 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 fourth dimension, usually a year but could be on a monthly or quarterly ass Budgets are cadaverous up for a number of reasons inwardly 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 part of the activities of the rail line will process with the chase: Functions of budgets * Planning Budgeting forces managers to plan, and therefore consider, ersatz future courses of action, to evaluate them properly and to subside on the beaver alternative. It also encourages managers to anticipate problems before they arise, consequently giving themselves time to consider alternative ways of overcoming them when they do happen, and to prepare for wad (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 brass of budgetary control, managers of different functions within the firm (i.e.

sales, production, pay, etc) may describe decisions about the future which are in conflict with an some other(prenominal) departments. For example, the sales department may plan an advertising break away to boost sales to a appoint beyond th e fruitful capacity of the firm, or without! the necessary finance A interrelated 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 surgery known as variance analysis. Comparing what was expected (the...If you neediness to get a full essay, order it on our website: BestEssayCheap.com

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