Budget And Budgetary Control As A Tool For Effective Decision And Planning In Ministries And Parastatals

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Budget And Budgetary Control As A Tool For Effective Decision And Planning In Ministries And Parastatals

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PROJECT TOPIC AND MATERIAL ON BUDGET AND BUDGETARY CONTROL AS A TOOL FOR EFFECTIVE DECISION AND PLANNING IN MINISTRIES AND PARASTATALS

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  • Name: Budget And Budgetary Control As A Tool For Effective Decision And Planning In Ministries And Parastatals
  • Type: PDF and MS Word (DOC)
  • Size: [70 KB]
  • Length: [56] Pages

 

 

CHAPTER ONE

INTRODUCTION

Budgeting is essentially concerned with planning and can be broadly illustrated by comparing with the routine a ship captain follows on each voyage.  Before the voyage, he will plan his route, taking into account such factors as shipping harzards, tides and possible adverse weather forecast.  During the voyage he will check on his plans and record and unusual conditions.  If necessary, he may even have to leviater from his plan if prevailing circumstances require it.  On completion of the voyage he will compare the conditions he encountered with those he expected and use the experience gained in planning similar voyages in the future.

Budgets and budgeting control are two accounting techniques, which top management adopts to achieve its tasks of planning, coordinating, directing and control in an organsiation.  Planning is mainly concerned with the establishment of objectives the formulation, evaluation and selection of the policies, strategies factics and actions required to achieve these objectives planning was previously based on historical cost conventions.  This process increased the emergency decision which top management had to make because historical cost conventions arenot future oriented; they do not aid planning.

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