Answer to Question #79337 in Finance for Hugh Heron
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. The costs of budgeting should be included in the staff costs center. Consultations at the stage of financial plans are a key element of the cost center's effectiveness. Corrective information may be provided at the stage of implementation of financial operational plans. The direct link between financial and operational staff contributes to the efficient use of resources. This helps to reduce costs.
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