This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ... CHAPTER XXIII MANUAL OF BUDGETARY PROCEDURE Need for Manual -, . As shown by the discussion in the preceding chapters, the procedure involved in the preparation and execution of the various departmental budgets is a comprehensive and complex one. It requires the cooperation of the various functional ...
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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ... CHAPTER XXIII MANUAL OF BUDGETARY PROCEDURE Need for Manual -, . As shown by the discussion in the preceding chapters, the procedure involved in the preparation and execution of the various departmental budgets is a comprehensive and complex one. It requires the cooperation of the various functional executives, and a very definite coordination of the activities of the functional" departments. The" success of the budgetary program is dependent on this cooperation and coordination. If any part of the procedure fails, it disrupts the remainder. For these reasons it is desirable that the budgetary procedure be very carefully worked out and reduced to written form, so that all executives and employees concerned may be fully cognizant of it. This can be most easily done by the preparation of a manual on budgetary procedure. Contents of Manual The contents of a manual on budgetary procedure will vary from business to business, depending on the volume and nature of the operations performed and upon the organization by which the operations are carried on. In a manufacturing business it is usually desirable that the manual discuss the following: 1. Organization for Budgetary Control 2. The Sales Budget 3. The Production Budget 4. The Labor Budget 5. The Manufacturing Expense Budget, 6. The Materials Budget 7. The Plant and Equipment Budget 8. The Expense Budgets 9. The Financial Budget 10. The Estimated Financial Statements Illustration of Manual To show concretely the possible contents of a manual on budgetary procedure, there is given below the manual of a manufacturing company. The company has sales of about $6,000,000 a year. Part of the product of the company is sold direct to the consumer, while the remainder is sold to merchants. Branches...
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