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Jemshah
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Asked: 2023-01-21T16:51:26+00:00 In:

Outline five objectives of budgetary control in an organization. (10 marks)November 2022

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Outline five objectives of budgetary control in an organization. (10 marks)November 2022

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    1. Planning: The primary objective of budgetary control is to assist in the planning process by setting financial targets and goals for the organization.
    2. Coordination: Budgetary control helps to coordinate the activities of different departments and units within the organization by aligning their financial objectives with the overall goals of the organization.
    3. Communication: Budgetary control facilitates communication between different levels of management by providing a common language and framework for discussing financial matters.
    4. Motivation: Budgetary control can be used as a tool to motivate employees by setting targets and goals, and providing incentives for achieving them.
    5. Performance evaluation: Budgetary control provides a means for evaluating the performance of different departments and units within the organization by comparing actual results to budgeted results.
    6. Cost control: Budgetary control helps to control costs by setting financial targets and goals, and monitoring actual results to identify and address any variances.
    7. Decision making: Budgetary control provides management with the financial information needed to make informed decisions by providing a clear picture of the organization’s financial position and performance.
    8. Risk management: Budgetary control can be used to identify and evaluate potential risks, and to develop strategies to mitigate those risks.
    9. Resource allocation: Budgetary control helps to ensure the efficient and effective allocation of resources by aligning financial objectives with the overall goals of the organization.
    10. Continuous improvement: Budgetary control is an ongoing process that helps organizations to evaluate their performance, identify areas for improvement, and make necessary adjustments to achieve their financial objectives.
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