Advantage Of Budgetary Control

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Recommended: Budgeting as a tool of performance in organisations

“Budgetary control is part of overall organisation control and is concerned primarily with the control of performance. The use of budgetary control in performance management has of late taken on greater importance especially as a more integrative control mechanism for the organisation”. Critically evaluate this claim, supporting your discussion with both theoretical arguments and practical example.

Budget is becoming more and more important in the company and organization nowadays, the enterprise can get the benefits when adopted the budget. Budget is a good way to execute the strategic plan of the company. However, set the budget is not enough, the enterprise need to use the budgetary control to make the budget plan running effectively …show more content…

Through budgetary control the company obtain the chance to make changes and adjust or amend the current strategic plan on the right way to be successful. Every company cannot always be lucky when they adopt their budget into real activities, they need change or adjust it based on the cost and the profits it generated. Budgetary control make the financial officials much easier to make corrective decisions before the issue of the budget grow and become hard to change.
2. Budget can coordinate different departments into same or different activities as a whole. Different departments or modules in the same company can contribute their efforts into the activities. The good way of the company unite all the modules together is the budgetary control. Thus can improve the performance and coordination of the company. It can also improve the communication between employees. Employee in the same company may not have the enough change to speak or coordinate with people from different modules. They got this chance to communicate with the people they may not have a talk. Thus can enhance the teamwork and improve the skills of …show more content…

4 Phases of a Budget Cycle. [online] Available at: http://smallbusiness.chron.com/4-phases-budget-cycle-71723.html [Accessed 25 Jun. 2015].
Small Business - Chron.com, (2015). The Advantages & Disadvantages of Flexible and Static Budgets. [online] Available at: http://smallbusiness.chron.com/advantages-disadvantages-flexible-static-budgets-23430.html [Accessed 25 Jun. 2015].
Yourarticlelibrary.com, (2015).Budgetary Control: 9 Limitations of Budgetary Control – Explained!. [online] Available at: http://www.yourarticlelibrary.com/budget/budgetary-control-9-limitations-of-budgetary-control-explained/25770/ [Accessed 26 Jun. 2015].
Sciencedirect.com, (2015). Management control systems and strategy: A critical review . [online] Available at: http://www.sciencedirect.com/science/article/pii/S0361368295000402 [Accessed 26 Jun. 2015].
It is about how to do with control system man.. you need try to talk about it man
Andy Neely, Mike Gregory, Ken Platts, (1995) "Performance measurement system design: A literature review and research agenda", International Journal of Operations & Production Management, Vol. 15 Iss: 4, pp.80 -

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