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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 technique of managing as well as supervising income along with expenditure for a sustainable flow of cash for various companies…
The subordinates were found to be pressurized to maintain and abide by the predetermined budget which was measured to be a grave issue as the stress adversely influenced the performance of the employees. The other problem was the absence of a healthy or good relation between the management and the workers after Robert Ferguson Jr. was appointed as the plant manager. He was learnt to be completely concerned towards cost reduction and attainment of the budget instead of admiring the efforts exerted by the workers and the problems witnessed by them which resulted in huge employee turnover. Furthermore, the accounting staffs were only concerned regarding budget maintenance instead of ensuring the quality of work. Installation of new machines and the time involved for setting up those machines were found to greatly hamper the working hours of the employees. The subordinate managers seemed to remain absolutely unaware of the reports of their respective performances and budgets. The foremost problem identified with regard to the BCS was the company’s adoption of a rigid approach to attain its budget requirements. ...
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