Control techniques

Control: Process used by managers to direct, regulate and restrain the actions of people so that the established goals of an enterprise may be achieved

Control techniques available to a manager include the following.. - Establishing standards - Establishing procedures - Training - Setting examples - Observing and correcting employee actions - Requiring records and reports - Disciplining employees - Preparing and following budgets

budgeting
The budget, or financial plan, will detail the operational direction of your unit and your expected financial results
The budget should not be a static document. It should be modified and fine-tuned as managerial accounting presents data about sales and costs that affect the direction of the overall operation.

Budgetary control
It helps in comparing actual results with standards set. According to Brown and Howard, Budgetary control is a system of controlling costs which includes the preparation of budgets, coordinating the departments and establishing responsibilities,comparing actual performance with the budgeted and acting upon results to achieve maximum profitability.

advantages
1. Maximisation of profits. 2. Proper co-ordination. 3. Provides Specific Aims. 4.Economy. 5. Corrective Action. 6. Reduced costs. 7. Determine weakness.

limitations

1. 2. 3. 4. 5. 6.

Uncertain future. Revision required Discourage efficient persons. Problem of co-ordination. Conflict among different departments. Depends upon support of top management.

Break even analysis

study of cost, volume,profit relationship will help in increasing revenue. It is used in two senses narrow sense & broad sense.

assumptions All elements of cost i.e. production, administration & selling and distribution can be segregated into fixed & variable components.

Fixed cost remains constant at all volumes of output.

Volume of production is the only factor that influences cost.

 There is a synchronisation between production and sales.

Thank you