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Highlight six requirements for the efficient operation of a budgetary control system.

      

Highlight six requirements for the efficient operation of a budgetary control system.

  

Answers


Martin
Requirements for efficient operations of budgetary control system.

i) Planning: This ensures that managers can come up with the direction in which an
organization should take, to anticipate problems and respond correctly to any problems
arising.

ii) Coordination: Coordinating the activities of the various departments so as to achieve the
overall objectives of the firm.

iii) Communication: This serves to inform the various departments on what needs to be done, by
whom and how.

iv) Motivation: This stimulates the performance levels of employees and management.

v) Control: This assists management by exception (MBE) i.e. where control measures are
applied when there is a significant deviation from expected results.

vi) Performance evaluation: An employee's performance can be evaluated and assessed based on
budgeted results.

marto answered the question on February 25, 2019 at 09:23


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