Budget Issues
From MediaWiki
- Most companies do variance analysis
Most companies to it
- For cost control
- Budgetary comparison
- Costs for Decision Making purposes
Beware of non-operating variances 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 do not get out of control Make budgets reasonable Get accurate fat collection Produce for managers with clear demarcation Behavioural aspects of budgetary control
