1 week course on Budget Control & Responsibility Accounting
This course on budgetary control and responsibility accounting is designed for students of effective management. Learn how to develop and use flexible budgets, evaluate manager performance, and understand the balanced scorecard. Discover the advantages of responsibility accounting and how it delegates decision-making and promotes management by objectives. Enhance your knowledge and skills in cost control and performance evaluation techniques. Join this course to gain valuable insights into maximizing profits and controlling costs in an organization.
What you’ll learn
- How to develop and use the flexible budget to evaluate managers.
- Performance evaluation techniques of managers such as responsibility accounting
- Responsibility centres – Cost, revenue, profit and investment
- Understand the balanced scorecard and how it is used to evaluate management performance
Budgetary control is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out variances if any. The comparison of budgeted figures with actual figures will help the management to find out variances and take corrective actions without any delay.
Budgetary control has become an important tool of an organization to control costs and to maximize profits. Some of the advantages of budgetary control are:
1. It defines the goals, plans and policies of the enterprise. If there is no definite aim then the efforts will be wasted in achieving some other aims.
2. Budgetary control fixes targets. Each and every department is forced to work efficiently to reach the target. Thus, it is an effective method of controlling the activities of various departments of a business unit.
Responsibility accounting is a system of accounting where specific persons are made responsible for the accounting of particular areas and cost control. If that cost increases, then the person will be held accountable and answerable. In this type of accounting system, responsibility is assigned based on a person’s knowledge and skills, and the proper authority is given to that person so that he can make a decision and show his performance.
Advantages of Responsibility Accounting
1. Responsibility accounting delegates decision making. Line managers, department heads, and supervisors are entrusted with operational decisions. The top management (executives) could then focus on strategic or long-term organizational objectives.
2. It provides a guide to the evaluation of performance. It helps to establish standards which are used for comparison with actual results.
3. It promotes management by objectives and management by exception.
Who this course is for:
- Students of effective management
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