Answer to Question #67477 in Accounting for lina

Question

1. Explain the procedures you might need to follow to access the financial data and plans necessary for efficient operation of a team/ section/ division.

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.

Answer 1

1. For efficient operation of a team / section / division must be clearly distributed responsibilities of each participant in the process. That is, identify the limits of liability and terms of preparation. You must also provide the level of access to information.
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.