Post on 16-Jul-2015
“managing is like holding a dove in your hand. Squeeze too hard & you kill it, not hard enough and it flies”-Tommy Lasorda, Major League Basketball
Expense Budget control› When actual expenses exceed budgeted
amounts, the difference signals the managers to identify possible problems and take corrective actions.
Revenue Budget control› Managers formulate action plans to correct the
budget variance when the budget goes below the budgeted amount or when the revenue goes above the budget.
Cash Budget control
› Example: If the cash budget shows a payroll expenditure of Rs. 20 L coming at the end of
the week but only Rs.10 L in the bank, the
organization must borrow cash to meet the payroll, and in contrast if the company has
more cash than necessary, the company
can arrange to invest the access to earn
interest income.
Capital Budget control
› Monitoring the amount of capital
expenditures and whether the assumptions made about the return on the investments
are true.
Control Panel› The New era of Management - Richard L. Daft
› Group 2 GLC HR