An Administrator At Ferguson & Son Manufacturing Company

Decent Essays
Tom Emory is an administrator at Ferguson & Son Manufacturing Company’s. Tom Emory spoke: “Boy, I hate those meetings! I never know whether my department 's accounting reports will show good or bad performance. I 'm beginning to expect the worst. If the accountants say I saved the company a dollar, I 'm called ‘Sir,’ but if I spend even a little too much—boy, do I get in trouble. I don 't know if I can hold on until I retire.”
This statement is a problem an administrator should never go into a meeting in the blind of his departments’ performance. This doesn’t say much for him as an administrator.
A budgetary control system is defined as “methodical control of an organization 's operations through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them.”(budgetary control) Budgetary control and responsibility centers; These enable managers to monitor organizational functions. A responsibility center can be defined as any functional unit headed by a manager who is responsible for the activities of that unit.
There are four types of responsibility centers:
a) Revenue centers
Organizational units in which outputs are measured in monetary terms but are not directly compared to input costs.
b) Expense centers
Units where inputs are measured in monetary terms but outputs are not.
c) Profit centers
Where performance is measured by the difference between revenues (outputs) and
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