Answer to Question #67477 in Accounting for lina
2.Operational staff are the people actually doing the job in each of the cost centres. These people are in the best position to identify problems, constraints or issues relating to current job costing budgets and to advise financial personnel of requirements for future budgets—to help prioritise resource needs for the next job costing exercise. They should be included in consultative processes for advising on cost information when formulating budgets.
Comment on this statement and the implications for expense in the organisation.
2. Operating personnel cost center should be involved in budgeting expenses. Consultations at the stage of financial plans is key to the effectiveness of the cost center. Since the operational staff has practical experience in the center costs. At the stage of implementation plans fnansovyh operational staff may provide corrective information. The direct connection between financial and operating personnel promotes efficient use of resources. That helps reduce costs.
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