ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT > Financial Management

TECHNIQUES FOR FINANCIAL CONTROL

TECHNIQUES FOR FINANCIAL CONTROL

Discuss TECHNIQUES FOR FINANCIAL CONTROL within the Financial Management forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; An organization will have certain objectives to achieve. A finance manager has to plan the things according to the organizational ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
TECHNIQUES FOR FINANCIAL CONTROL
Old
 (1 (permalink))
Savio Cabral
savio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of lightsavio13 is a glorious beacon of light
 
savio13
Student of Arts & Law
Mumbai, Maharashtra
Status: Offline
Posts: 1,390
Join Date: May 2009
Location: Mumbai, Maharashtra
Lightbulb TECHNIQUES FOR FINANCIAL CONTROL - July 19th, 2009

An organization will have certain objectives to achieve. A finance manager has to plan the things according to the organizational objectives. After planning, the finance manager has to implement the plans but some times these proposed plans need to be changed with the changing circumstances. Thus, a finance manager has to use the financial control techniques which involve the monitoring of the implementation plans, and has to take necessary actions wherever the implemented plans deviate from the actual plans. Further, these controlling techniques help in appraising the performance of various departmental heads. The techniques of financial control, besides budgeting are,

• Divisional Performance Control.
• Parta System.
• Flexible Budgeting.
• Statutory Audits.

Divisional Performance Control:

Every organization will have divisions which carry out the specific work, for example carpenter division, welding division, machining division etc. In a division based cost center business the divisional head determines how the operations related to his division are to be carried out. The division a performance control gives the measure of the divisional performance which helps in assessing the proportionate profit of the division in the profit of the organization.

Parta System:

In Parta system a unit-in-charge is responsible to the chairman of the company or group. In this system the performance of the unit-in-charge is monitored by the group chairman. Based on important variables like daily quantity of production, value of production, sales, material consumed, cost of material consumed, fixed costs, profit etc. The chairman will evaluate the performance of the unit-in-charge and unit-in-charge will be rewarded accordingly.

Flexible Budgeting:

A flexible budget is a budget that is prepared for a range, i.e. for more than one level of activity. It is a set of alternative budgets for different expected levels of activity. A flexible budget is defined as a budget which, by recognizing the difference between fixed and variable costs, is designed to change in relation to the level of activity attained. The flexible budget is also known as variable budget, dynamic budget, sliding scale budget.

A fixed budget is designed for only one level of activity. The fixed budget is defined as the budget which is designed to remain unchanged irrespective of the level of activity actually attained. For example, a firm made a fixed budget estimates for a sales volume of 5,000 products. But actual production is 7,000 products, then the comparison of cost of estimates with actual will be meaningless. Thus, a finance manager has to make flexible budgets.

Statutory Audits:

Auditing is generally done by persons called auditors. Auditors will examine and evaluate the financial statements and records of the firm and will give his opinion in the form of report.
Audits are classified into two types:

• External or Statutory Audit
• Internal Audit

External or statutory audit is further classified into (a) Statutory Financial Audit (b) Statutory Cost Audit (c) Audit by Comptroller and Auditor General.

Every company at the end of the financial year will make financial statements. According to statutory financial audit these financial statements are to be certified by the independent auditor who is a Chartered Accountant as per the Chartered Accounts Act, 1949, and the auditor has to give his opinion.

According to the Companies Act all government companies are subjected to an audit carried by the authorities from the office of the Comptroller and auditor General of India. This audit is in addition to the statutory audit, which is done by a certified chartered accountant.

Internal Audit: Large firms have their own staff of internal auditors, who perform the same analysis as external auditors. According to the Institute of Internal Auditors, Inc., US, internal audit is defined as an independent appraisal activity within an organization for the review of operations as a service to the organization. In the internal auditing, and internal auditor has to ensure, that the accounting data and the records are maintained according to the principles of accounting and to see whether the management is complying with the laid policies and procedures.
Advertisements



To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.


............SAVIO
Friends: (3)
Reply With Quote

Re: TECHNIQUES FOR FINANCIAL CONTROL
Old
 (2 (permalink))
Sweta Shah
swetarshah is an unknown quantity at this point
 
swetarshah
Assistant Manager at Torrent Power Limited
 
Institute: 12
Status: Offline
Posts: 13
Join Date: Jun 2009
Re: TECHNIQUES FOR FINANCIAL CONTROL - July 19th, 2009

hi,

i am new to this. i want project for operations management in SCDL in demand and capacity of indian power sector. Pls help me urgently.

Thanks....
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
control, financial, techniques

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Login
Forgot Password?  New User?
  

» Ads





» Recent Threads

Admit Card is Available...
Last post by Murgha Joshi
2 Hours Ago 12:56 PM
0 Replies
TYBMS Sem 5 Solved Board... ( 1 2 3... Last Page)
Last post by Samy Punjabi
16 Hours Ago 10:47 PM
231 Replies
LIST DOWN UR FAV LYRIC ( 1 2 3... Last Page)
Last post by Vinay Kumar
21 Hours Ago 05:18 PM
473 Replies
Can facebook can be used... ( 1 2 3)
Last post by Vinay Kumar
22 Hours Ago 05:08 PM
27 Replies
GMAT Exam
Last post by Vinay Kumar
22 Hours Ago 05:07 PM
1 Replies
My struggles transformed...
Last post by Vinay Kumar
22 Hours Ago 05:03 PM
2 Replies
Do Beauty and Brains Go...
Last post by Vinay Kumar
22 Hours Ago 05:00 PM
9 Replies
I need SWOT analysis of...
Last post by Yashwant Naik
1 Day Ago 08:51 AM
0 Replies
Assembly Election 2014...
Last post by Yashwant Naik
1 Day Ago 08:18 AM
0 Replies
Maharashtra Assembly...
Last post by Yashwant Naik
1 Day Ago 08:12 AM
0 Replies
Maharashtra Legislative...
Last post by Yashwant Naik
1 Day Ago 08:03 AM
0 Replies
Philip Kotler... ( 1 2 3... Last Page)
Last post by A Abo
1 Day Ago 04:17 AM
342 Replies
effectiveness of...
Last post by Archana Sawant
1 Day Ago 11:48 PM
9 Replies
Are you a working...
Last post by Apurva Dhanwantri
1 Day Ago 10:54 PM
6 Replies
sikkim manipal...
Last post by Apurva Dhanwantri
1 Day Ago 10:53 PM
7 Replies

» Projects Helpline

Stock Marketing TYBMS...
Last post by Rajat Audichya
3 Days Ago 05:42 PM
CRM- Hotel Industry
Last post by Matt Martin
4 Days Ago 10:32 PM
advertising in telecom...
by kpis_02
Last post by Mohit Utmani
5 Days Ago 10:45 AM
project on agricultural...
by ~vivek~
Last post by Rahila Makhjankar
1 Week Ago 05:41 PM
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in