Explain the budgetary control

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 22, Problem 1Q

(a)

To determine

Explain the budgetary control

(a)

Expert Solution

Answer to Problem 1Q

The use of appropriate budgets in order to systematize the operations of organization is called as budgetary control. It measures the performance of various budgets.

Explanation of Solution

Budget:

Budget is an effective tool to present the estimated actions for future time period. It includes the financial data for various accounts usually, income or expenses to be incurred in future.

Budget is prepared for the coming period by taking financial data of the current period. Budget is prepared for every department in the organization.
Budgetary control is a tool to measure the actual performance with set targets and objectives.
It takes information from the appropriate budgets and controls the performance of budget.
Budgetary control amalgamates the reports of various budgets to compare the actual performance with the planned one.

Conclusion

Thus, budgetary control is an effective tool to measure the performance of budgets.

(b)

To determine

Explain the steps included in budgetary control.

(b)

Expert Solution

Explanation of Solution

The steps in budgetary control are:

Inculcate a target of performance: The first step in budgetary control is to set a target of performance. Setting of definite or fixed plan should be first step. The responsibility of each person should be made clear before executing any budget so that a target of performance is set for every person related to the organization.
Record the actual performance: Recording of actual performance is necessary to measure the planned action with the actual one. Information from each department should be taken so that proper projection of the actual performance of budget can be done. Identifying the total frequency of individual budget is the second step.
Compare the performance with the target performance: The objective of budget must be clearly stated and communicated well to all the concerned people in order to compare the actual performance with the target performance.
Analyzing differences and taking appropriate decision: If there is any difference in the actual performance of budget as compared to planned performance, the difference must be analyzed properly to control the situation.

Conclusion

Thus, comparing the actual performance of budget and analyzing the differences to take necessary actions are the main step of budgetary control.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Q1. S-Sports Ltd specialises in selling premium sports equipment. Over the month, it recorded the following transactions. -Incurred $10,000 on credit for a one-time promotional event organised for its customers and local sports team. This amount will be paid in the coming month. -Made sales of $50,000 to customers, of which $5,000 is credit sales and will be collected in the following month. The goods sold were purchased from a local supplier at $20,000. -Purchased $15,000 of goods from a supplier on credit, with payment due in 30 days. -Paid rents of $12,000 for three months, with this month being the first month. -Repaired a window broken by a typhoon in summer. The repair cost is $3,000 in cash. -Paid supplier $25,000 for goods purchased last month. -Collected $8,000 in advance and promised to deliver goods the following month. -Incurred $1,800 depreciation expense and $9,000 other operating expenses. The operating expenses will be paid early next month. Q.For each item…

I am having trouble getting the balance sheet to balance. Additional information: Loan and Company Information • The new facility would be a 10-year lease beginning on 01/01/202X and ending on 12/31/203X. The annual payments are $500,000 with a discount rate of 5% and no annual rate increase. The CFO has verified that this would be treated as a lease under ASC 842 guidance.o Present value of annuity due of $1: n=10, i = 5% is 8.10782 • An additional cash investment of $5 million is needed to support the purchase of inventory, cups, and packaging. The bank has pre-approved Rebel Dog Coffee for the loan for a term of 24 months at an interest rate of 5%, to be repaid in a balloon payment in the final month of the loan.o The following are the required debt covenants that Rebel Dog must carry: general, fire, theft, and destruction insurance on the inventory.o Rebel Dog must also maintain a positive credit rating during the loan. • Rebel Dog’s LLC founding members have…

Cullumber Company Income Statements For the Years Ended December 31 2025 2024 Net $2,400,400 $2,240,000 Cost of good 1127000 1,307,000 Gross profit 1,072,400 522,200 Selling and administrative 650,000 622,700 Income from operations 422,400 309,500 Other and lac Intereat ex 20,500 25,000 Income before income tax 254,300 203,500 Income 118,440 35,050 Net Income $274.200 $198,480 Ast Cullumber Company Balance Sheets December 33 2025 2024 Current act Cash $78.130 $23,450 Debt Investments (short) 96,200 65,000 Accounts recchable (net) 153,140 133,640 Inventory 163,000 150,150 Total current acts 471,370 422,250 Plantasacts (nct) $43,700 676,390 Total $1,324,970 $1,100,640 Lablities and Stockholders' Equity Current Tablitics Accountab $200,000 $189,020 Income tax payable 56.550 54,500 Total current tic 254,330 243,620 Bonds payable 286,000 250,000 Total Tablice 550,510 502,420 Stockholders' equity Comment($ 377,000 270,000 Retained carnings 407 420 215,020 Total stockholders' equity 784,420…

Answer 2

Question

Chapter 22, Problem 1Q

(a)

To determine

Explain the budgetary control

(a)

Expert Solution

Answer to Problem 1Q

The use of appropriate budgets in order to systematize the operations of organization is called as budgetary control. It measures the performance of various budgets.

Explanation of Solution

Budget:

Budget is an effective tool to present the estimated actions for future time period. It includes the financial data for various accounts usually, income or expenses to be incurred in future.

Budget is prepared for the coming period by taking financial data of the current period. Budget is prepared for every department in the organization.
Budgetary control is a tool to measure the actual performance with set targets and objectives.
It takes information from the appropriate budgets and controls the performance of budget.
Budgetary control amalgamates the reports of various budgets to compare the actual performance with the planned one.

Conclusion

Thus, budgetary control is an effective tool to measure the performance of budgets.

(b)

To determine

Explain the steps included in budgetary control.

(b)

Expert Solution

Explanation of Solution

The steps in budgetary control are:

Inculcate a target of performance: The first step in budgetary control is to set a target of performance. Setting of definite or fixed plan should be first step. The responsibility of each person should be made clear before executing any budget so that a target of performance is set for every person related to the organization.
Record the actual performance: Recording of actual performance is necessary to measure the planned action with the actual one. Information from each department should be taken so that proper projection of the actual performance of budget can be done. Identifying the total frequency of individual budget is the second step.
Compare the performance with the target performance: The objective of budget must be clearly stated and communicated well to all the concerned people in order to compare the actual performance with the target performance.
Analyzing differences and taking appropriate decision: If there is any difference in the actual performance of budget as compared to planned performance, the difference must be analyzed properly to control the situation.

Conclusion

Thus, comparing the actual performance of budget and analyzing the differences to take necessary actions are the main step of budgetary control.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 22, Problem 1Q

(a)

To determine

Explain the budgetary control

(a)

Expert Solution

Answer to Problem 1Q

The use of appropriate budgets in order to systematize the operations of organization is called as budgetary control. It measures the performance of various budgets.

Explanation of Solution

Budget:

Budget is an effective tool to present the estimated actions for future time period. It includes the financial data for various accounts usually, income or expenses to be incurred in future.

Budget is prepared for the coming period by taking financial data of the current period. Budget is prepared for every department in the organization.
Budgetary control is a tool to measure the actual performance with set targets and objectives.
It takes information from the appropriate budgets and controls the performance of budget.
Budgetary control amalgamates the reports of various budgets to compare the actual performance with the planned one.

Conclusion

Thus, budgetary control is an effective tool to measure the performance of budgets.

(b)

To determine

Explain the steps included in budgetary control.

(b)

Expert Solution

Explanation of Solution

The steps in budgetary control are:

Inculcate a target of performance: The first step in budgetary control is to set a target of performance. Setting of definite or fixed plan should be first step. The responsibility of each person should be made clear before executing any budget so that a target of performance is set for every person related to the organization.
Record the actual performance: Recording of actual performance is necessary to measure the planned action with the actual one. Information from each department should be taken so that proper projection of the actual performance of budget can be done. Identifying the total frequency of individual budget is the second step.
Compare the performance with the target performance: The objective of budget must be clearly stated and communicated well to all the concerned people in order to compare the actual performance with the target performance.
Analyzing differences and taking appropriate decision: If there is any difference in the actual performance of budget as compared to planned performance, the difference must be analyzed properly to control the situation.

Conclusion

Thus, comparing the actual performance of budget and analyzing the differences to take necessary actions are the main step of budgetary control.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 22, Problem 1Q

(a)

To determine

Explain the budgetary control

(a)

Expert Solution

Answer to Problem 1Q

The use of appropriate budgets in order to systematize the operations of organization is called as budgetary control. It measures the performance of various budgets.

Explanation of Solution

Budget:

Budget is an effective tool to present the estimated actions for future time period. It includes the financial data for various accounts usually, income or expenses to be incurred in future.

Budget is prepared for the coming period by taking financial data of the current period. Budget is prepared for every department in the organization.
Budgetary control is a tool to measure the actual performance with set targets and objectives.
It takes information from the appropriate budgets and controls the performance of budget.
Budgetary control amalgamates the reports of various budgets to compare the actual performance with the planned one.

Conclusion

Thus, budgetary control is an effective tool to measure the performance of budgets.

(b)

To determine

Explain the steps included in budgetary control.

(b)

Expert Solution

Explanation of Solution

The steps in budgetary control are:

Inculcate a target of performance: The first step in budgetary control is to set a target of performance. Setting of definite or fixed plan should be first step. The responsibility of each person should be made clear before executing any budget so that a target of performance is set for every person related to the organization.
Record the actual performance: Recording of actual performance is necessary to measure the planned action with the actual one. Information from each department should be taken so that proper projection of the actual performance of budget can be done. Identifying the total frequency of individual budget is the second step.
Compare the performance with the target performance: The objective of budget must be clearly stated and communicated well to all the concerned people in order to compare the actual performance with the target performance.
Analyzing differences and taking appropriate decision: If there is any difference in the actual performance of budget as compared to planned performance, the difference must be analyzed properly to control the situation.

Conclusion

Thus, comparing the actual performance of budget and analyzing the differences to take necessary actions are the main step of budgetary control.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 22, Problem 1Q

(a)

To determine

Explain the budgetary control

(a)

Expert Solution

Answer to Problem 1Q

The use of appropriate budgets in order to systematize the operations of organization is called as budgetary control. It measures the performance of various budgets.

Explanation of Solution

Budget:

Budget is an effective tool to present the estimated actions for future time period. It includes the financial data for various accounts usually, income or expenses to be incurred in future.

Budget is prepared for the coming period by taking financial data of the current period. Budget is prepared for every department in the organization.
Budgetary control is a tool to measure the actual performance with set targets and objectives.
It takes information from the appropriate budgets and controls the performance of budget.
Budgetary control amalgamates the reports of various budgets to compare the actual performance with the planned one.

Conclusion

Thus, budgetary control is an effective tool to measure the performance of budgets.

(b)

To determine

Explain the steps included in budgetary control.

(b)

Expert Solution

Explanation of Solution

The steps in budgetary control are:

Inculcate a target of performance: The first step in budgetary control is to set a target of performance. Setting of definite or fixed plan should be first step. The responsibility of each person should be made clear before executing any budget so that a target of performance is set for every person related to the organization.
Record the actual performance: Recording of actual performance is necessary to measure the planned action with the actual one. Information from each department should be taken so that proper projection of the actual performance of budget can be done. Identifying the total frequency of individual budget is the second step.
Compare the performance with the target performance: The objective of budget must be clearly stated and communicated well to all the concerned people in order to compare the actual performance with the target performance.
Analyzing differences and taking appropriate decision: If there is any difference in the actual performance of budget as compared to planned performance, the difference must be analyzed properly to control the situation.

Conclusion

Thus, comparing the actual performance of budget and analyzing the differences to take necessary actions are the main step of budgetary control.

Answer 6

Chapter 22, Problem 1Q

(a)

To determine

Explain the budgetary control

(a)

Expert Solution

Answer to Problem 1Q

The use of appropriate budgets in order to systematize the operations of organization is called as budgetary control. It measures the performance of various budgets.

Explanation of Solution

Budget:

Budget is an effective tool to present the estimated actions for future time period. It includes the financial data for various accounts usually, income or expenses to be incurred in future.

Budget is prepared for the coming period by taking financial data of the current period. Budget is prepared for every department in the organization.
Budgetary control is a tool to measure the actual performance with set targets and objectives.
It takes information from the appropriate budgets and controls the performance of budget.
Budgetary control amalgamates the reports of various budgets to compare the actual performance with the planned one.

Conclusion

Thus, budgetary control is an effective tool to measure the performance of budgets.

Answer 7

Chapter 22, Problem 1Q

(a)

To determine

Explain the budgetary control

Answer 8

(a)

Expert Solution

Answer to Problem 1Q

The use of appropriate budgets in order to systematize the operations of organization is called as budgetary control. It measures the performance of various budgets.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Budget:

Budget is an effective tool to present the estimated actions for future time period. It includes the financial data for various accounts usually, income or expenses to be incurred in future.

Budget is prepared for the coming period by taking financial data of the current period. Budget is prepared for every department in the organization.
Budgetary control is a tool to measure the actual performance with set targets and objectives.
It takes information from the appropriate budgets and controls the performance of budget.
Budgetary control amalgamates the reports of various budgets to compare the actual performance with the planned one.

Answer 13

Conclusion

Thus, budgetary control is an effective tool to measure the performance of budgets.

Answer 14

(b)

To determine

Explain the steps included in budgetary control.

(b)

Expert Solution

Explanation of Solution

The steps in budgetary control are:

Inculcate a target of performance: The first step in budgetary control is to set a target of performance. Setting of definite or fixed plan should be first step. The responsibility of each person should be made clear before executing any budget so that a target of performance is set for every person related to the organization.
Record the actual performance: Recording of actual performance is necessary to measure the planned action with the actual one. Information from each department should be taken so that proper projection of the actual performance of budget can be done. Identifying the total frequency of individual budget is the second step.
Compare the performance with the target performance: The objective of budget must be clearly stated and communicated well to all the concerned people in order to compare the actual performance with the target performance.
Analyzing differences and taking appropriate decision: If there is any difference in the actual performance of budget as compared to planned performance, the difference must be analyzed properly to control the situation.

Conclusion

Thus, comparing the actual performance of budget and analyzing the differences to take necessary actions are the main step of budgetary control.

Answer 15

(b)

To determine

Explain the steps included in budgetary control.

Answer 16

(b)

Expert Solution

Explanation of Solution

The steps in budgetary control are:

Inculcate a target of performance: The first step in budgetary control is to set a target of performance. Setting of definite or fixed plan should be first step. The responsibility of each person should be made clear before executing any budget so that a target of performance is set for every person related to the organization.
Record the actual performance: Recording of actual performance is necessary to measure the planned action with the actual one. Information from each department should be taken so that proper projection of the actual performance of budget can be done. Identifying the total frequency of individual budget is the second step.
Compare the performance with the target performance: The objective of budget must be clearly stated and communicated well to all the concerned people in order to compare the actual performance with the target performance.
Analyzing differences and taking appropriate decision: If there is any difference in the actual performance of budget as compared to planned performance, the difference must be analyzed properly to control the situation.