Budget Issues

• Mst companies do variance analysis

Most companues to it

• For cost control
• Budgetary comparison
• Costs for DM puposes

Beware of non-operating variancs that may have an affect on profits

Significant favorable variances should be investigated as well Be aware of compensating variances

Effective budgetary control Short reporting periods - so things dont get out of control Make budgets reasonable Get accurate fat collection Produce for managers with clear demarcation Behavoural aspects of budgetary control