Research Paper on:
Budgetary Controls and the Savings They Represent

Unformatted Sample Text from the Research Paper:
Where there is any system of control or monitoring is put into place there will be a plethora of associated costs. These will be both direct costs, such as the  costs of the systems involved, and indirect, such as the additional time taken up in preparing the figures and the supervision of the figures that are being monitored and the  opportunity cost of how that labour and effort may have been otherwise employed. The calculations that needs to take place with any scheme  of this type is whether or not the savings that will result will be greater than the costs incurred. If the answer is no then the scheme is not  worth implementing, unless it is adjusted so that the balance of the equation is changed. When we consider this in terms of  a budget it appear to be commonsense that a budget should be controlled, where it is not there is not only the risk of lost funds and over spends but  also the increased risk of misappropriation of funds and lax use of funds. If we are consider the subject in order to ascertain in controls may be seen as const  effective in controlling a budget we first need to proceed with consideration of what we mean by a budget. The  role of the budget is to control the costs and therefore the profits. It is also important in the short term for cash flow as there needs to be an  ability for a company to be able to pay their suppliers and creditors in the short term. Therefore, budgets can be seen as an important mechanism for controlling a company.