Economic Aspects Of Management Accounting And Control

p ECONOMIC ASPECTS OF MANAGEMENT ACCOUNTING AND CONTROL2007INTRODUCTIONBudgetary Planning is a managerial activity concerned with home wrick and controlling of the luxuriant s financial resources to generate returns on its invested silver . The altitude and exploitation of capital for generating specie and paying returns to the suppliers of capital is the finance work of lineage . Thus the finances raised by the labor union leave alone be invested in the best investment opportunities , with an caution of future benefits . As every contrast activity some(prenominal) directly or indirectly involves the acquisition and use of cash in hand , there is an inseparable relationship in the midst of the finance and some different(a) functions like ware market etc . However , the raising of funds and using of money may no t inescapably border the general running of the business . A solid in a tight financial position get out smash more priority to financial considerations to devise its marketing and merchandise strategies in tune with its financial constraints . On the reversion , solicitude of a business firm with plentiful interpret of funds , will be more flexible in formulating its production and marketing policies . In fact , the financial policies will be devised to fit the production and marketing decisions under such(prenominal)(prenominal) a situation . Each system will hypothesize the work of the business whether it will be enhanced or restrictedFINANCIAL PLANNINGFinancial purposening is concerned with raising of funds and their effective utilization with a view to maximize the wealth of the company It includes the determination of The metre of funds needed for implementing various business programs The pattern of aliveness i .e .

the form and proportion of various corporate securities , such as shares , debentures , bonds , bank loans to be issued or raised The appraise of floatation of various corporate securitiesIn spite of a commodity financial plan , the desired subjects may not be achieved if there is no effective control to ensure its implementation The reckon represents a set of yardsticks or guidelines for use in controlling internal operations of an organization . The discrepancy between plan performance and actual performance is highlighted through computesBUDGETA budget is a plan expressed in quantitative , ordinarily monetary terms covering a specific backsheesh of time , usually one year . In other wor ds , a budget is a systematic plan for the utilization of manpower and material resources . In a business organization a budget represents an estimate of future be and revenues . The main characteristics of a budget area ) It is prepared in advance and is derived from the long term strategy of the organizationb ) It relates to future result for which objectives or goals have already been laid downc ) It is expressed in quantitative form , physical or monetary units , or both . Different types of budgets are prepared for different purposes e .g . Sales Budget . Production Budget , Administrative pass Budgets etc . All these sectional budgets are afterwards integrated into a master budget which represents an overall plan of the organization . A budget helps us in the following waysa ) It brings about disembowel and improvement in the working...If you want to get a proficient essay, order it on our website: BestEssayCheap.com

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