Advantages of budget and budgetary control essay
2. The budget should clearly define the responsibilities of each department of the company. 3. Because a budget is based on estimates of sales, costs, etc., they must be careful to make estimates. 4. We need to make a budget flexible so that it can accommodate unavoidable changes when necessary. 5. A flexible budget is a budget prepared for different levels of occupancy. It can be seen as a series of fixed budgets prepared for different levels of activity. For example, a budget can be drawn up for occupancy rates 60, 70, 80, 90. 3. Lack of flexibility. Budgets are drawn up in advance and based on estimates. Some changes may be required later, but the budget estimate may remain the same. Flexibility can therefore sometimes be lacking. 4. Expensive tools. Using budgetary control techniques is expensive. Drawing up a budget is essential for many organizations. Below we list seven benefits of having and using a budget. Planning orientation. The process of preparing a budget takes management away from the day-to-day, short-term management of the business and forces them to think longer term. In fact, this is the main purpose of budgeting. The behavioral aspect is essential because it plays a role in decision-making (Isidore R. and P. 2019). Budgetary slack is seen as a behavioral problem because it is related to the moral frame. An administrative budget is an official, detailed financial plan for a company for a coming period. An administrative budget is usually prepared and identified on an annual or quarterly basis. National budgets as part of the management control apparatus, designed to promote the efficient use of resources and provide support for other critical functions. Nigerian budget reform is seen as Abstract. We study the use of budgets in public organizations whose governance is shaped by democratic structures. In particular, we investigate political variables: election cycle, majority. Budgeting can help you and your family take the first step toward taking control of your money. It can also help you avoid debt. Get started with budgeting. The key to budgeting is to stick to a basic rule: spend less than you earn. One way to start budgeting is to make a list of: the money you take in the things you spend money on. The benefits of budgetary control can be described in the following order: 1. Maximization of profits. The budget controls help the company maximize profits by properly organizing and coordinating various tasks. The budget also regulates expenditure based on revenue and capital.