Translation of Responsibility for Accounting Purposes

Translation of Responsibility for Accounting Purposes

Regarding the current accounting articles we will discuss about the translation of the responsibility for accounting need.

Efficiency Cost Accounting Oversight Through Accountability -
Not only managers have the obligation to achieve a particular result can be achieved when the employee was assigned the task of clear criteria. Similarly, the obligation to report to his boss will run smoothly when it is clearly defined to whom he had to report. For that it is necessary to clear organizational structure, accompanied by a job description of each employee explicitly and clearly anyway. TRANSLATION OF LIABILITY for accounting purposes to monitor expenses, determination of responsibility is not enough. It should be further elaborated in a container called a budget. So the budget is a reflection of translation responsibility. Budget is a manifestation of a series of formal objectives set in the value of money. In other words, a budget is a description of the objectives to be achieved are the days will come forth in the form of value for money. The company made the budget in order to be implemented, rather than vice versa. Feels burdensome. Hence the need for an organizational climate that encourages managers to implement the budget. Senior managers should set an example by tying himself to achieve budget targets. For that he should give enough time in the budget preparation process. Budget preparation process requires cooperation between the neat one with the other. For example, the wisdom of marketing to increase sales, to be supported by the production department to prepare raw materials, labor costs and factory overhead costs are planned.

Besides the overall budget of an undertaking made from smaller budget hierarchy, each is a financial plan of the division, department, section or other unit of the organizational structure. From sisni appears that in the preparation of the budget should pay attention to the management hierarchy.

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