Some Management Accountants Argue That Budgets Are Great for Planning, but Not For Control. What Do You Think They Mean? - Essay Example

Only on StudentShare

Extract of sample
Some Management Accountants Argue That Budgets Are Great for Planning, but Not For Control. What Do You Think They Mean?

First of all, control can mean making sure that the real numbers match the ones that were set out in the budgeting plan. It can mean ensuring the goals are met by controlling the expenditure, controlling the employees’ actions and controlling the outcome. Additionally, the use of planning cannot be underestimated. It is identified as an activity to plan a particular set of activities in order to serve a number of objectives. On the basis of objectives, the process of planning is identified and carried out. And, with the help of budgets, the process of planning is determined, discussed, highlighted and finally implemented. Without the use of budgets, the planning becomes ineffective and meaningless. On the other hand, controlling is a subsequent process, which can be achieved when an organization becomes in a position to compare the budgeted figures with the actual results. On the basis of such comparison, the organization is enabled to control the excessive costs or costs that can be reduced. On the basis of this understanding, planning serves different objectives with the use of budgets in comparison with the control that is there to bring different aspects of the management results. Although both are significant to the entire process of budgeting, yet they cannot be underestimated at the cost of each other. ...Show more


Some management accountants argue that budgets are great for planning, but not for control. What do you think they mean? Do you agree with the statement? Explain why? Every organisation, company, governmental organisations have budgeting process that determines expenses and revenues, sales and savings and sets financial goals for the future…
Author : kovaceknorris
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Some Management Accountants Argue That Budgets Are Great for Planning, but Not For Control. What Do You Think They Mean?"
with a personal 20% discount.
Grab the best paper

Related Essays

GST style - partnership business
Due to the sophisticated nature of the business, the business was opened in the form of retail outlet such that the only retail outlet of the business is situated in the well off shopping arena of Birmingham city, i.e. Bullring Shopping Centre. Bullring is mainly famous for providing the customers those brands, which are highly rated and liked by the customers such as Apple in Information Technology based products, Vodafone in the field of telecommunication carrier industry and many other popular brands, which catch the attention of their respective customers.
10 pages (2500 words) Assignment
Management and Cost Accounting: Planning, Control and Budgeting
Accounting is a process of tracking record of varied transactions in an appropriate manner. Moreover, accounting is a procedure of recording transactions of businesses with relation to receipt and payment as well as incomes and expenditures.
11 pages (2750 words) Essay
Planning,Control, and Risk
According to the “Fortune” magazine, Apple Inc. was considered the most admired company in 2008 in the United States (Goldman, 2012). At present, Apple is the largest publicly traded company by market capitalization in the world. Apple Inc. is the largest technological company in the world in terms of profit and revenue, bigger than Microsoft and Google combined (Hughes, 2012).
6 pages (1500 words) Research Paper
It is a framework for monitoring the financial performance of the business. Financial benchmarking enables businesses to learn lessons from others and help them identify areas they have to concentrate on (Platen & Heath, 2009). The benchmarking technique used include; operational review and financial ratios.
3 pages (750 words) Assignment
Directors' Remuneration Packages
It has been observed that director’s remuneration packages have got much of the media and shareholder attention due to its bipolar nature (OUP, 2009). Industry experts have pointed out that companies need to address following four issues regarding the director’s remuneration packages.
3 pages (750 words) Essay
The use of budgets in the improvement of management performance and control within global businesses
The use of budgets in the improvement of management performance and control within global businesses Introduction Budgeting is a management tool for performance measurements and its variants have appeared from time to time depending upon the market situation, prevailing competition etc.
5 pages (1250 words) Essay
Organisational Planning and Control
In order to accomplish desired objectives and to meet the requirements of customers, organisations belonging to this modern day context needs to adopt as well as execute effective organisational planning along with control by a greater level. Proper and advanced planning helps an organisation to frame strategies which help in the attainment of superior competitive position over its chief business market contenders.
8 pages (2000 words) Essay
Management accounting-Bias Budgets
In most cases, the approval process takes a longer time than preparing and this is because the managers have to decide on prioritizing and the involved discussion between the management team. In fact, the process of approving budget involves the following steps: budget consolation, reviewed by financial staff, reviewed by top management, discussion with division manager, and making the tough decision.
8 pages (2000 words) Coursework
Accountants and Management Accountants
Accountants and Management Accountants. Accounting is a continuous process in all business entities. It is applied in every operation within an entity or organisation so as to determine its progress in relation to its making profit. This should be done at the end of each period as determined by the entity.
8 pages (2000 words) Essay
Bertos manufacturing corporation
Therefore, financial institutions are becoming more significant in the Chinese economy (Buckley & Casson 34). Brazil is suitable for the BFSI subsidiary because it is a major world emerging economy. Brazil also represents the first South
2 pages (500 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email