Write about the Budgeting for Commercial & Industrial Era.
Relevance of Budgeting the Modern Commercial & Industrial Era
In a time of changes in the modern management, where the autonomy and responsibility of the companies increases, the decision making demands pressure and speed, and therefore the factor of prediction and control of the budgets is of vital importance like an efficient administrative tool.
It is for this purpose that this work is born on the elaboration and management of the commercial budget to face the future challenges of the current administration. In most companies the barrier is not to ignore the importance of the elaboration and control of the commercial budget, but to ignore how to do it, and even when it is done, not to take advantage of the advantages that would evidently give as an element of planning and control expressed in financial economic terms within the framework of a strategic plan(Drury, 2011).
The design of a procedure for the elaboration and control of a commercial budget will contribute to the correct elaboration and control of the same in the company. The following are some of the other relevancies of budgeting in commercial era.
It facilitates efficiency and control within the operation and requires cooperation between all departments of the company, motivating management to focus on defining the objectives(Patel, 2012). It also promotes standardization and control in the flow of information while reducing uncertainty which means a continuous improvement challenge for the executives within the company.
This document deals with the different types of budgets within the business environment, as well as other generalities of this administrative tool vital for current decision making and for the future challenges of business management since budgets arise from planning, One of the stages of the administrative process, and help formulate strategies and policies associated with the different forecasts of current business(Sagar, 2009)
Budget Programming Process: Critical Analysis and Recommendations
This innovation generates a period of deep analysis and understanding of costs, promotes the need to budget and program and promotes technicality, group work and decision making based on comprehensive cost study and evaluation( Crosson and Needles, 2007).
The role played by budgets is highlighted by prestigious modern writers who point to the vitality of prognoses related to cash management.
Crosson, S and Needles, B,. (2007) Managerial accounting, Cengage learning, USA
Drury, C. (2011). Cost and management accounting. 1st ed. Andover, Hampshire, UK: South-Western Cengage Learning.
Patel, B,. (2012) Project management, edition 2nd, Vikas publications, India
Sagar, R,. (2009) Tulsian’s Isc Accountancy XII, edition 5th, Ratna sagar, India