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Manufacturing Budget Analysis
Finance & Accounting
Pages 5 (1255 words)
Manufacturing Budget Analysis Problems in budgetary control system of Ferguson & Son Manufacturing Company and its Impacts A Budgetary Control System (BCS) is a financial technique that helps in controlling and evaluating income as well as expenditure, supervising the demands for cash and borrowings (Scribd Inc, 2012).
According to Emory, the augmenting amount of orders increased the time needed for adjustment and setting up of machines as well. The escalating stress in terms of orders and machine adjustments eventually began to irritate the machinists who planned not to abide by the budget. Therefore, the company must pay more focus on the mentioned procedure and its related steps because it influenced company’s budget as well as product quality (Scribd Inc, 2012). It was also learnt from the case study that the various departments of the company lacked coordination which adversely affected the confidence of the employees’ as well as the functioning of the machines. Although, BCS attempts at keeping a control of the individual departments which is considered to prove advantageous for the companies but the kind of BCS pursued in Ferguson & Son Manufacturing Company further degenerated their functioning process (Scribd Inc, 2012). Revising Ferguson & Son Manufacturing Company’s BCS to improve its effectiveness According to company’s situation, it can be said that viable targets were considered to be the chief concern for structuring an effective budget system. With reference to the mentioned context, it can be stated that in case the budget proved to be excessively high, the general process tends to automatically get affected. ...
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