Budgetary Control

Download 0.71 Mb.

View original pdf

Page	6/23
Date	06.06.2021
Size	0.71 Mb.
	#56830

1 2 3 4 5 6 7 8 9 ... 23

Budgetary Control

Cont… 3. Communication A budget is a communication device.4.Motivation

Cont…
2. Co-ordination
Effective planning & organization contributes a lot in achieving co-ordinations. There should be coordination in the budgets of various departments.
Ex:- Budget of sales should be in coordination with the budget of production. Similarly,
production budget should be prepared in coordination with the purchase budget, and so on.
13

Cont…
3. Communication
A budget is a communication device.
4.Motivation
A budget is a useful device for motivating managers to perform inline with the company objectives. If individuals have actively participated in the preparation of budgets, it acts as a strong motivating force to achieve the targets.
14

Download 0.71 Mb.

Share with your friends:

1 2 3 4 5 6 7 8 9 ... 23