Budgeting and Beyond

Publikation: Working paperForskning

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and to a minor extent to business units in practice. At that time James McKinsey describes budgetary control as involving the following:
1. The statement of the plans of all the departments of the business for a certain period of time in the form of estimates
2. The coordination of these estimates into a well-balanced program for the business as a whole.
3. The preparation of reports showing a comparison between the actual and the estimated performance, and the revision of the original plans when these reports show that such a revision is necessary.
As can be seen from the statement budgetary control includes at the same time a planning and coordination mechanism for actions and performance ex ante as well as a control mechanism ex post through a comparison between estimated and actual plans and performance.
UdgiverDepartment of Accounting and Auditing, Copenhagen Business School
Antal sider72
StatusUdgivet - 2011