Product Cost and Budgetary Control Methodologies and Systems - Essay Example

Only on StudentShare

Extract of sample
Product Cost and Budgetary Control Methodologies and Systems

The budgetary control systems controls costs through the preparation of budgets, comparing actual performance with the budget. This allows the managers to act upon the budget and results in order to attain maximum profitability (FAO, 2010). Over the last two decades the computer world is changing how companies operate and report. The need to incorporate computerized systems in every business aspects is still ongoing research. Budget information systems and product cost systems are analysed in this report, their benefits and challenges they pose. The product cost and budgetary control methodologies and systems There are two budget control methodologies i.e. the budgets and the budgetary control. The budget is the formal statement that represents the projected financial resources that are needed to undertake business activities. Budgetary control on the other hand is a technique and a tool that is used by management to compare the budget with the actual performance. Any discrepancies are then acted upon either by revising the budget or exercise control action. The budget information system (BIS) BIS has been in use for the last 25 years having been used for budgetary needs in schools, cities and even countries. BIS integrates all the budget functions into one single application. ...Show more

Summary

Support Systems Name: Institution: Instructor: Subject: Date: Introduction A budget is a recorded plan of action. It a statement that contains the projected results in financial and non-financial basis over a period of time. The budgetary information assists managers to plan, control and to even coordinate business activities…
Author : zhahn
Product Cost and Budgetary Control Methodologies and Systems essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Product Cost and Budgetary Control Methodologies and Systems"
with a personal 20% discount.
Grab the best paper

Related Essays

Cost Control
In general, construction cost control consists basically of monitoring actual performance against cost estimates and identifying the variances. The traditional cost control system are good in contract management but cannot be practiced during the execution of the project.
3 pages (750 words) Essay
Budgetary Control in Performance Management
This is with regards to the fact that budgeting is among the most important aspects of an organization’s operations. Budgetary control is basically driven by responsibility centers, with clear emphasis on budget construction details for effective control of the organization performance.
7 pages (1750 words) Essay
Budget Control Methodology
Deviations (discrepancies between the budget and the real outcome) are documented and reconciled. A resolution may be made to cut down on expenditure or redistribution of capital reserves. Subsequently, such methods greatly lessen the need for full review sequences.
7 pages (1750 words) Essay
Finance and Management
Cost accounting and information systems offer benefits to many companies; cost accounting is normally a method of accounting in any organization that is concerned with manufacturing of goods and goods sold at the same time. Cost accounting systems offers a means for performing an accurate inventory valuation of the inventory at hand.
7 pages (1750 words) Essay
Worplestrop Case Study
The prime goal of every business entity is to maximize its earnings and minimize its expenses. Businesses utilize budgetary control measures to accomplish this goal. By means of budgetary control methods, organizations attempt to forecast their operational activities as well as their outputs in an efficient manner to attain the maximum profits at the least cost.
8 pages (2000 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
Cost Control
The actual costing for 33250 units is shown as $ 1322750. Therefore there is a variance of $ 25762.5 from the flexed budget and the actual cost.
5 pages (1250 words) Essay
Worplestrop Case Study
Akin to all other business entities, the Worplestrop Partnership wants to develop an efficient costing and information systems for the management of their organization. This would necessitate
6 pages (1500 words) Essay
Management & Budgetary Control and the Beyond Budgeting debate
as very critical for the optimum performance of the organization as it provides the set pattern to the management that it has to follow and makes the job of making performance analysis easier for the management as it is taken as the criteria against which the output or outcomes
8 pages (2000 words) Essay
Budgetary control
r, the Cost & Management Accountants (CIMA) Institute defines budgetary control as “The establishment of budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by
4 pages (1000 words) Essay
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
YOUR PRIZE:
Apply my DISCOUNT