Tuesday, November 19, 2019

Budgetary Control Assignment Example | Topics and Well Written Essays - 2000 words

Budgetary Control - Assignment Example Accounting practices such as, budgetary control and performance management prevails within organizations and as such they are part of organization’s wider environment (Scott, 2001). The practice of budgetary control has the potential to create several ways of social and organizational functioning and this practice often goes through certain modifications in response to changes in organizational form and society (Hopwood, 1994). As a consequence of this, budgetary control and performance management practices are by no means stationary phenomena within organizations. These practices that change over time are not homogenous and can take a different shape in response to varying contents, places and times. The management accounting practice of budgetary control and its subsequent use in performance management and reporting are considered to be very important in current business environment (Fowler, 2008). The requirement to adopt such accounting techniques was a tenet in the 90s followed by majority of world organizations. The usage of budgetary control as an accounting practice has evolved since then, precisely because of its significant contribution in the field of organizational performance management (Stieglitz and Heine, 2007). In order to be able to critically evaluate the claim regarding use of budgetary control in performance management, the researcher will have to conduct a thorough review of empirical literatures, encompassing each and every aspect of budgetary control with an aim to establish a relationship between budgetary control and performance management. It is widely known that resources of an organization need to be efficiently and effectively managed in order to achieve organizational objectives. This implies that organizations must have the ability to achieve its objectives by adopting cost effective strategies. Thus, management of performance requires coordination and control of the efforts made by an

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