Duties of budget controller in the organization.

Duties of budget controller in the organization.

To line up the various functions of the Budget Committee, to bring them together and to co-ordinate their efforts in the matter of preparation of target figures, there should be a person usually designated as the Budget Controller, who can provide ready data relating to all the functions. He is more or less the secretary to the budget committee. The Budget Controller does not control; he is a staff man; he advises but does not issue instructions. read more

5 disadvantages of zero-based budgeting

5 disadvantages of zero-based budgeting

Zero-based budgeting emerged in the late 1960s as a response to incremental budgeting. With zero-based budgeting, all budgets start at zero and activities/costs are only allowed if they are justified under investigation. All requests for resources must be presented and evaluated on the basis of cost-benefit. Zero-based budgeting is best suited to discretionary spending where there is no clearly defined input-output relationship such as in marketing, research and development, and training or public sector organization such as district councils. read more

Performance Budgeting – meaning.

Management accounting revision question on zero based budgeting based on ACCA & DRURY

Performance budget has been defined as a ‘budget based on functions, activities and projects.’ Performance budgeting may be described as ‘the budgeting system in which input costs are related to the performance, i.e., end results.’ According to National Institute of Bank Management, Performance budgeting is, “the process of analyzing, identifying, simplifying and crystallizing specific performance objectives of a job to be achieved over a period, in the framework of the organizational objectives, the purpose and objectives of the job.” From the above definitions, it is clear that budgetary performance involves the following: read more

5 stages involved in zero based budgeting system.

need of human resource accounting

The zero-based budgeting system is a budgeting system that require every item of expenditure to be justified as if a particular activity or program is taking off the first time.

The following are stages involved in zero-based budgeting systems:

Identification of decision unit/tasks and formulating operational plans read more