Responsibility Center

A budget plan is the most effective way to keep the business and its finances on track. It gives you the opportunity to review the business’ performance and any factors that are affecting or may affect your business. Also to manage your money more effectively, allocate appropriate resources, monitor performance, meet planned objectives and plan for the future.

This research paper is a brief discussion of budget management analysis. Budgeting is the key to financial management, and is the key to translates an organization goals or plan into money. Budgeting is a rough estimate of how much a company will need to get their work done, and provides the basis for evaluating performance, a source of motivation, coordinating business activities, a tool for management communication and instructions to employees. Without a budget an organization would be like a driver, driving blinded without instructions or any sense of direction, that’s how important a budget is to every organization and individual likewise (Clark, 2005).

Budgeting systems turn managers’ perspectives forward and by looking to the future and planning, managers are able to anticipate and correct potential problems before they arise (Horngren, Foster & Datar, 2000). Through budgeting, management can plan ahead and maintain enough cash to pay creditors, to have adequate raw materials to meet production requirements, and to have sufficient finished goods to meet expected sales (Kieso, 2002).

Budget is a planned outcome of the future - defined by your plan that your business wants to achieve.

Accounting Responsibility refers to a term in which a person is accountable to control the cost to maintain the performance.

Budgeting as a management tool entails meeting day-to-day tasks by following a financial plan of allotted funding for daily wages, having the right volunteers for needed areas, meeting monthly expenses, and creating a fundraising plan to increase capital for the

Budgeting is the systematic method of allocating financial, physical, and human resources to achieve an organization’s strategic goals. Budgets are utilized by for-profit and non-profit organizations to monitor the progress towards the goals, assist in the control of spending, and help predict cash flow for the organization.

Budget is the major financial and economic statement. The role of the budget is to keep track of the money coming in and the money going out. It is essential part of running any business effectively. It can help make a short and long term projections about financial situation, avert a financial crisis and plan for major financial changes.

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.

Budgeting is crucial in the well-being of a company especially the financial health status of a company. In fact, no professionally managed firm would fail to budget, since the budget establishes what is authorized, how to plan for purchasing contracts and hiring, and indicates how much financing is needed to support planned activity. It is routine for a company to budget for its expenses. Expense budgets act as a guideline of how much revenue a company would require keeping the activities running. It is used to set the company’s targets for a certain period.

The mission of the organization is to serve the near and broader community financially for both short, mid, and long-term purposes as well as increase profit for the business. The products and services offered are intended to help clients invest in the business. Those banking products include investment vehicles as well as federally insured bank deposits that pay a competitive savings rate. Customer service is also essential to the success of the business. To reward employees for their services and performance level, workers are offered a competitive compensation package with is elevated based on merit. Additionally, they have a base remuneration package. Although the organization has many branches, the primary development focus of the organization concerns the investment manager position. The investment manager is responsible for finding clientele that can benefit from the community banking strategy.

A cost centre would be an appropriate centre when top management thinks that the unit managers could not cope with more responsibilities or if top management does not wish to lose control over investment divisions or the level of activity.

Yes, in the investment center. The managers are responsibility for the segments,investmentand asset base as well as the profits. Usually, evaluate based on the return on assetsemployed, evaluation might include a variety of measures such as profit, return oninvestment, residual income, economical valued added and a range of non-financialmeasures. Hence the manager in the districts should consider about the acquisition of newequipment which is an investment for the segment. And also, they evaluated equipments andaccounts receivable etc. based on the return on assets employed. May be it can also be the profit center because the managers usually evaluated in terms of effectiveness in raisingsegment profit level and controlling costs.QMSC should use EVA instead of ROA as the measure of district and manager performance. Since EVA is the best proxy for shareholder value at the business unit level, improving EVA will also improve the companys overall performance. The managers district objectives will then be congruent with the companys overall objectives. This will induce Mr. Richards to employ additional assets

A budget is a financial plan. It is a projection (forecast) of what will happen financially if certain strategies and decisions are implemented. This is something we all do from time to time.

Budget and budgetary control practices are undeniably indispensable as organizations routinely go about their business activities and operations. These organizations are constantly on the alert on how actual levels of performance agree with planned or budgeted performance. A budget expresses a plan in monetary terms. It is prepared and approved prior to a particular budgeted period and explicitly may show the income, expenditure and the capital to be employed by organizations in achieving their goals and objectives.