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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1340 |
Essay's paper body
The control aspect of budgeting may be corrective or preventative. When using budgeting as a corrective control, there is much emphasis on the deviations from budget. These deviations may reveal that changes or corrections should be made to the budget. Comparing the performance with the plans, a manager can make necessary adjustments to minimize discrepancies from the projected goal...
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Comparing the performance with the plans, a manager can make necessary adjustments to minimize discrepancies from the projected goal. In this way, the firm not only controls operations, but also can delegate authority without the loss of control. On the other hand, the preventive aspect of budgeting encourages management to stay within the allotted financial boundaries that have been set my management...
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