Chapter 8, Problem 8.32C

(1)

To determine

The solution to the problem arose in the F&S manufacturing company as it reduces the effectiveness of the system.

Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.

(2)

To determine

Revision of budgetary control system to improve effectiveness of system.

Introduction: Budget means the estimation made for the usage of money to decide the amount that executor will need to execute the plan. The budgeting process refers to the process in which future business activity is planned for preparing the way of performing goals by mapping the formal plan.