AN EVALUATION OF BUDGET AND BUDGETARY CONTROL IN A MANUFACTURING COMPANY
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civilized study it is a generally accepted more that main tools of modern
management is budget. Jesses Burke (1999) he is head of Maxwell graduate school
of citizenship and public affair in Syracuse university write on the evaluation
of modern budgeting. In his opinion he stated that originally budget were seen
as a modern management tool which spread as a public prose for the revenue and
expenditure of the economic. With the advent of modern budgeting the private
organization budgeting goes beyond that. Budgets are also used to predict
expenses and cost must be analyzed to determine the feasibility of the system
employed. Budget has comprehensive outlines of the organization formulate its
goals and objectives to be achieved during the year under preview. It
establishes priorities for the use of scarce resource identify policies and
operational modalities to implement programmers and project efficiency and
provides a basis for an equalization of resources.
would conclude that budget in nay organization are central tools for
organization development, budgeting requires explicit attention to targets and
co-ordination of the results. This is result of public interest, which
generally generated by corporate and individual organization. They are
characteristic by measure budget deficit, considerable uncertainly as to an
actual result and day to day management crises.
Most of the
policies on the budget remain operational when resources f their achievement
are allocated. Budgets are the main measure by which essential resources of men
and materials are allocated for the accomplishment of almost all the goals of
those who under them.
be provided for every development and every aspect of operation,
administration, selling and manufacturing all of which from the basis on which on
procedures must be set up, whereby predetermined cost can be obtained rather
having this information available only after the accounting period. Effective
budget proved detailed reports of completer costs regarding operations of the
enterprise for the purpose of comparing such data with other period of
operation and with other concern of the organization and for the analysis of
the nature of any various that occurs.
price can be determined without taking into consideration in any estimating for
over heads. The grater diversification of the products the more important it is
for the manufacturing to have an accurate assignment of the overheads cost of
the enterprise to each product manufacturing. The compilation of all the data
regarding the actual cost as compared system so that it can be something built
into the cost to advance aid management in funding enterprises to greater
The size and
complexity of the business necessities breaking down the budgeting period into
short range and long range budgeting period. Short range cover period of one
year or short and budget of sales, over heads and cash etc are prepared during
the period. A review of the budgets carried out from time to time range compared
actual figures with budgeted figures. If the budgets are fund to be out of line
they will have to be adjusted for future period. The key is constant review up
dating of the budgets. The long range budgets on the other hands, cover
generalities are not as detailed and specific as short range budget for example
the budgeter is more interest in the general projected increase in sales
volume. Stemming from the projector sales volume would be capital improvements.
This would give management an idea of what now types of equipment new plant etc
the company should be planning on acquiring. The budget being a fools of
management should be flexible to give room for updating from time to time.
Management must be ready to meet actual demands and changes not withstanding
consideration in the preparation of the budgets is that management should not
set unrealistic and unattainable goals. The more the goals are realistically
set, the more the budgets will be an aid in establishing efficiency and
answering maximum profit.
AN EVALUATION OF BUDGET AND BUDGETARY CONTROL IN A MANUFACTURING COMPANY
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