Sunday, December 5, 2010

TRADITIONAL NON BUDGETORY CONTROL TECHNIQUES

TRADITIONAL NON BUDGETORY CONTROL TECHNIQUES
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5
There are also many traditional non-budgetary control techniques used for budgetary
control. The more important are
1. STATISTICAL DATA
Statistical analysis of an operation and the clear presentation of statistical data
(historical forecast nature) are important to control. Most managers understand
statistical data best when the data are presented in chart or graphic form. In chart or
graphic trends and relationship are easier to see. Moreover, if data are meaningful,
when presented on chart then data should be formulated in such a way that
comparison with some standard can be made. What is the significance of a 3 or 10
percent rise or fall in sales or costs? Who is responsible clear presentation of
statistical data in chart in an art that requires imagination?
Moreover, since no manager can do anything about history so the data, presented an
charts should be made available about information like variations due to accounting adjustment and other periodic difference.
SPECIAL REPORTS AND ANALYSIS
Special reports and analyses help in problems for control purposes.Althouh
accounting and statistical reports gives necessary information’s but there are some
problems in which they are inadequate. One successful manager of a completed
operation hired a small staff of trained analysts and gives them no assignment other
then investigating and analyzing activities under his control. This group developed of
a surprising sense for situations in which things did not seem just right. Almost
invariable, their investigation disclosed opportunities for cost improvement.
OPERATIONAL AUDIT
Another effective tool of managerial control is the internal audit or operational audit.
Operational auditing is the regular and independent appraisal of the accounting,
financial and other operations of an enterprise by a staff of internal auditors. The
operational auditors reflect the fact, appraise polices procedure, use of authority,
quality of management, effectiveness of methods, special problems and other phases
of operations.
PERSONAL OBSERVATION
One should never over-look the importance of control through personal
observation.Budgets, charts, reports, ratios, auditors, recommendations and other
devices are essential to control. But the manager who depends wholly on these
devices and sit cannot make effective control. Managers should have task of seeing
the enterprise objectives are accomplished by people. A manager can get information
and experience from personal observation.

Ditulis Oleh : Naz Nazir // Sunday, December 05, 2010
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