Page 146 - DMGT514_MANAGEMENT_CONTROL_SYSTEMS

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Unit 7: Budgeting: Tool for Management Control

Unit 7: Budgeting: Tool for Management Control Notes

CONTENTS
Objectives
Introduction
7.1 Relation to Strategic Planning
7.1.1 Contrast with Forecasting

7.2 Uses of a Budget
7.2.1 Contents of an Operating Budget
7.3 Operating Budget Categories
7.4 Other Budgets
7.5 Budget Preparation Process
7.5.1 Budget Department
7.5.2 Budget Committee

7.5.3 Issuance of Guidelines
7.5.4 Initial Budget Proposal
7.6 Budget Revisions
7.7 Behavioural Aspects while Preparing Operating Budgets
7.8 Budget Ratios
7.9 Management Control of Operations
7.9.1 Formal Information
7.9.2 Preparation of Flexible Budget
7.10 Management Action

7.11 Summary
7.12 Keywords
7.13 Review Questions
7.14 Further Readings

Objectives

After studying this unit, you will be able to:

 Discuss the relation to strategic planning
 Explain the operating budget categories
 Describe the budget preparation process and budget revisions
 Explain budget ratios

 Discuss management control of operations
 Explain the management action

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