Budgetary Control in Performance Management - Essay Example

Only on StudentShare

Extract of sample
Budgetary Control in Performance Management

A budget is a formal statement of financial resources that have been set aside to finance specific activities over a given time period. Through a budget, managers can be able to coordinate organizational activities with it being a point of reference. Integrative Budgetary Control Integrative organizational budgetary control is a technique in which actual results of activities are compared to those specified in a budget and corrective actions undertaken. Differences that exist between actual and planned activities in the budget result in budgetary control measures where responsibility centers are charged with the responsibility of exercising organizational control action or revising the specific budget plans. Through responsibility centers, organization managers can monitor functions of the organizations and make necessary corrections to deviation from plans (Singla, 2009, p.117). A responsibility centre is basically a functional unit in an organization being headed by a hierarchical manager charged unit performance. Responsibility centers may include expense centers, revenue centers and investments centers. Budgetary control with regards to revenue centers involves comparison of actual outputs with budget outputs to ascertain necessary control measures. ...Show more


Running head: Budgetary Control in Performance Management Budgetary Control in Performance Management Insert Name Insert Grade Course Insert 16 February 2012 Budgetary Control in Performance Management Introduction Performance management has advanced its use of organizational budgets to control its operations to a more integrative control mechanism…
Author : lilla40
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Budgetary Control in Performance Management"
with a personal 20% discount.
Grab the best paper

Related Essays

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
Recruitment methods
The organization can cut down on its recruitment and selection costs as well since it would not have to call that many applicants if it knows who to call and when to call them. More than anything else, there is a dire need to understand that generating large applicant pools would mean low motivation levels for the aspiring employees because they would take the up coming jobs in a difficult way, thinking of them as ones which will not be easy to commit to.
4 pages (1000 words) Coursework
Product Cost and Budgetary Control Methodologies and Systems
It further enables top management to anticipate the effects and outcomes from a given set of events on the company. This brings out the budgetary control methodology that involves systematic planning the most effective use of the company’s resources to achieve the entity’s objectives.
7 pages (1750 words) Essay
Preliminary Analysis of Cost and Budgetary Information Systems
This is because, introduction of a suitable cost and budgetary information systems allows for effective planning for the future, controlling of present activities, and an evaluation on the past performance within an organization. Considerably, the choice of a suitable cost and budgetary information systems allows for planned action, co-ordination, and optimum use of resources as it defines responsibilities.
6 pages (1500 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
How do the differences between profit and non-profit organisations affect the way in which they should employ budgetary controls
These groups of business establishments are mainly comprised non-governmental organizations, such as the Goodwill and government establishments, which aim at providing basic services like health care to the public at low rates. Such business establishments charge low fees for their products just to meet the operating costs hence they offer goods and services at low cost.
4 pages (1000 words) Essay
Management accounting and control
This has prompted the use of the balance scorecards approach which enables the organizations to balance the internal and process measures with results and the financial measures which gives the managers a complete picture of the organization as well as the areas where they should make improvements (Lipe and Salterio 2000).
15 pages (3750 words) Coursework
Management accounting and control (s-12 -1-4))
This variance from an organisation’s budget is what directs attention to important aspect of budgetary process, the control process. There is need for accountants to explore all variances as a practice of “management by exception” (Bunce et al 1995).In the management of public resources, it is important to adopt a control model that aids the process of good governance.
15 pages (3750 words) Coursework
Funding body
9 Reason behind Choosing Venture Capital 9 Attractiveness of this venture 10 References 13 Bibliography 14 Appendices 15 Part1. Description about the Business The business is about opening a fitness center in Manchester. The fitness center will be situated at the north of University of Manchester.
8 pages (2000 words) Essay
Advances in accounting
motivated by the importance of and challenges facing the application of open book accounting (OBA) in inter-organizational cost management with the present competitive market conditions. The article addresses the relevance of OBA under the challenging conditions (Hoffjan,
4 pages (1000 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