Accounting Assignment Help
This study has focused on the use of budget targets for the purpose of evaluation of four different divisions of the company dealing in furniture products. It has highlighted the significance of different functions of budgets and their contribution in the success of the organisation. This study recommends that the budget targets should not be the only benchmark to be considered while analysing performance of any division since there are multiple practices or methods employed by managers of other divisions in order to meet the targets.
Different Functions of a Budget
The budget plays a significant role in today management of the organisation and is considered critical for the quantification of the objectives of the organisation or division in financial terms. The budget activity assists the management in various aspects like
• Decision Making
• Provide necessary information to account division
• Develop future goals and objectives
• Assistance in Financial Planning
• Quantification of objectives and standards
• Monitor resources via measurement of performance
As explained above the budget plays a vital role in the success of the organisation and critical for the success of any section due to multiple functions played by budget.