One of management's functions is to control company operations. Control consists of the steps taken by management to see
Posted: Wed May 04, 2022 7:00 am
One of management's functions is to control company operations.
Control consists of the steps taken by management to see that
planned objectives are met. We now ask: How do budgets contribute
to control of operations? The use of budgets in controlling
operations is known as budgetary control. Such control takes place
by means of budget reports that compare actual results with planned
objectives. The use of budget reports is based on the belief that
planned objectives lose much of their potential value without some
monitoring of progress along the way. Just as I and your other
professors give exams to evaluate your progress, top management
requires periodic reports on the progress of department managers
toward their planned objectives.
These budget reports provide management with feedback on
operations. Budget reports are prepared as frequently as needed.
From these reports, management analyzes any differences between
actual and planned results and determines their causes. Management
then takes corrective action, or it decides to modify future
plans.
Pick any company of your choice and discuss in >150 words,
which variance(s) you believe (is) are the most important one(s).
You may focus on the cost variances that we discussed in chapters 9
and 10 or look at some that we did not get to look at or at least
not in great detail, e.g. variances between budgeted and actual
sales revenue or budgeted and actual cash in/outflows. Please share
why you feel this variances is of crucial importance and how often
you believe a manager should look at the reports (e.g. daily,
weekly, monthly, quarterly).
PLEASE TYPE IT.(AND DONT FORGET TO CHOOSE A COMPANY)
Control consists of the steps taken by management to see that
planned objectives are met. We now ask: How do budgets contribute
to control of operations? The use of budgets in controlling
operations is known as budgetary control. Such control takes place
by means of budget reports that compare actual results with planned
objectives. The use of budget reports is based on the belief that
planned objectives lose much of their potential value without some
monitoring of progress along the way. Just as I and your other
professors give exams to evaluate your progress, top management
requires periodic reports on the progress of department managers
toward their planned objectives.
These budget reports provide management with feedback on
operations. Budget reports are prepared as frequently as needed.
From these reports, management analyzes any differences between
actual and planned results and determines their causes. Management
then takes corrective action, or it decides to modify future
plans.
Pick any company of your choice and discuss in >150 words,
which variance(s) you believe (is) are the most important one(s).
You may focus on the cost variances that we discussed in chapters 9
and 10 or look at some that we did not get to look at or at least
not in great detail, e.g. variances between budgeted and actual
sales revenue or budgeted and actual cash in/outflows. Please share
why you feel this variances is of crucial importance and how often
you believe a manager should look at the reports (e.g. daily,
weekly, monthly, quarterly).
PLEASE TYPE IT.(AND DONT FORGET TO CHOOSE A COMPANY)