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interneta bibliotēka
Atlants.lv bibliotēka
Accounting for Decision Making: Budgeting in Ceria Restaurant
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Publicēts: 15.01.2006.
Valoda: Angļu
Līmenis: Vidusskolas
Literatūras saraksts: Nav
Atsauces: Nav
Darba fragmentsAizvērt

Companies that win big today play by different rules. Somehow, they still have to keep score on whether they're building for future growth or living on past accomplishments. What is particularly interesting about companies that change the game is that they often find new ways to measure their performance.
There are two types of control, namely budgetary and financial. The following case that we are about to discussed concentrates on budgetary control only. Budgetary control is defined by the Institute of Cost and Management Accountants (CIMA) as:
"The establishment of budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by individual action the objective of that policy, or to provide a basis for its revision"
;Budget is basically a formal statement of the financial resources set aside for carrying out specific activities in a given period of time. It helps to co-ordinate the activities of the organization. An example would be an advertising budget or sales force budget. Budgetary control, on the other hand, is actually a control technique whereby actual results are compared with budgets. Any differences (variances) are made the responsibility of key individuals who can either exercise control action or revise the original budgets.

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