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Budgeting.pptx

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Budgeting.pptx

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Work of Management

Planning

Controlling

Directing and

Motivating

Planning and Control



Planning --

involves

developing

objectives and

preparing various

budgets to

achieve these

objectives.



Control --

involves the steps

taken by

management that

attempt to ensure

the objectives are

attained.

A. It uncovers potential bottlenecks before they occur.

B. It coordinates the activities of the entire organization

by integrating the plans and objectives of the various

parts.

C. It ensures that accounting records comply with

generally accepted accounting principles.

D. It provides benchmarks for evaluating subsequent

performance.

Which of the following is not a

benefit of budgeting?

Advantages of Budgeting

Advantages

Communicating

plans

Think about and

plan for the future

Means of allocating

resources

Uncover potential

bottlenecks

Coordinate

activities

Define goal

and objectives

Responsibility Accounting

Managers should be held responsible for

those items — and only those items — that

the manager can actually control

to a significant extent.

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