Important Points for IC 89 - Management Accounting Exam
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Forecasting is a preliminary step for budgeting. Budgets begin when forecasting ends.
First step for budgetary control is the preparation of budget which is a formal statement showing allocation of financial resources for different products, plans, process, projects or activities, estimated revenue collection from them in consideration of financial resources allocated or budgeted expenditure therefore in a given period of time.
A well defined organisation chart is a first step towards introduction and implementation of budgetary control system.
An organisation chart is a statement defining functional relationship, delegation of authority and responsibility and reporting system of executiveds and employees responsible for accomplishment of organisational goals and objectives.
Organisation chart shows the following aspects: Functional responsibiltiy of a particular executive or employee, Functional relationship among the responsible employees and executives, Delegation of authority for carrying out the assigned functions, Functional Heads and their positions in the whole organisation chart.
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