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

Beginning inventory, purchases, and sales for an inventory item are as follows: Date Line Item Description Units and Cost Sep. 1 Beginning Inventory 23 units @ $15 5 Sale 13 units 17 Purchase 25 units @ $17 30 Sale 17 units Assuming a perpetual inventory system and the last-in, first-out method: Determine the cost of goods sold for the September 30 sale.$ Determine the inventory on September 30. $

Line Item Description Units and Cost Beginning inventory 12 units at $48 First purchase 15 units at $53 Second purchase 55 units at $56 Third purchase 13 units at $61 The firm uses the periodic inventory system, and there are 25 units of the commodity on hand at the end of the year. What is the ending inventory balance of Commodity Z using LIFO? a. $1,465 b. $1,265 c. $5,244 d. $1,200

Company sells blankets for $40 each. The following information was taken from the inventory records during May. The company had no beginning inventory on May 1. Company uses a perpetual inventory system. Date Blankets Units Cost May 3 Purchase 11 $20 10 Sale 4 17 Purchase 10 $17 20 Sale 6 23 Sale 3 30 Purchase 8 $24 Determine the May 31 inventory balance using the FIFO inventory costing method. a. $328 b. $272 c. $320 d. $384

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.