- 1. Control is making sure that something happen the way it was planned to happen. As implied in this definition, planning and controlling are virtually inseparable functions.
- 2. Traditional techniques Modern techniques
- 3. The Traditional Control Devices (the Budget) The Traditional no Budgetary Control Devices
- 4. Revenue and expense budgets Time, space, material, and product budgets Capital expenditure budgets Cash budgets Balance sheet budgets Budget summaries Zero- base budgeting
- 5. There are, of course, many traditional control devices not connected with budgets, although some may be related to, and used with, budgetary controls. Among the most important of these are: statistical data, special reports and analysis, analysis of break- even points, the operational audit, and the personal observation.
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- 7. An interesting control device is the break even chart. This chart depicts the relationship of sales and expenses in such a way as to show at what volume revenues exactly cover expenses.
- 8. Another effective tool of managerial control is the internal audit or, as it is now coming to be called, the operational audit. Operational auditing, in its broadest sense, is the regular and independent appraisal, by a staff of internal auditors, of the accounting, financial, and other operations of a business.
- 9. In any preoccupation with the devices of managerial control, one should never overlook the importance of control through personal observation.
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