Budgetary Tools Essay by Neatwriter

Budgetary Tools
This paper discusses three budgetary tools: The control function, forecasting and performance measurement.
# 62049 | 2,420 words | 2 sources | MLA | 2005 | US
Published on Nov 06, 2005 in Accounting (Financial) , Accounting (Managerial) , Business (Accounting)


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Description:

This paper explains that the control function plays an important role in both management and accounting because it includes a top-bottom flow, where the upper management or higher authorities oversee a certain process and a bottom-top process, when the feedback and follow-up actions come from the lower levels. The author points out that forecasting is essential in a relevant and well set-up expenditure system because forecasting permits the upper management and the decision factors within the company to establish what the financial requirements will be for the company in the next period of time, which creates the necessary premises for a thoroughly established budget. The paper states that the most relevant informational source within the company, which can influence the decision process in preparing future budgets, is the financial report, which lets the decision bodies know how the company is performing at the respective level from a financial point of view.

Table of Contents
Control Function
Forecasting
Performance Measurement
Preparation for Future Budgets

From the Paper:

"The 4000 Direct Expenses account is where expenses that "will stop when you are not working." Labor and materials are two examples that come to mind in this case. However, there is a long list of indirect expenses that are associated with a business and these are recorded in the 5000 Indirect Expenses account. This are supposed to never go away, but it may often be the case that a manager will discover all kinds of expenditures that were made and were recorded here, expenses which do not necessarily increase the added-value of the company."

Cite this Essay:

APA Format

Budgetary Tools (2005, November 06) Retrieved June 20, 2019, from https://www.academon.com/essay/budgetary-tools-62049/

MLA Format

"Budgetary Tools" 06 November 2005. Web. 20 June. 2019. <https://www.academon.com/essay/budgetary-tools-62049/>

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