Budgetary Control and Costing System - Case Study Example

Date Product cost and budgetary control methodologies and systems The development and maintenance of costing and information systems in organizations is a principle function that ought to be undertaken by any organization that operates in the contemporary society.... Cost accounting system has a function of bringing maximum efficiency in an organization.... Product costs are major components of any product manufacturing system.... There are four major costing methods:- Throughput method, direct costing method, full absorption costing method and the activity based costing method (Martin & Wolf, 2008)....

As the delays are minimized by risk management and minimizing the project cost is done by costing the importance of risk management and costing is working on them simultaneously.... As the East London, the place that hosts the Olympic Games has a well developed Light Railway system, the Underground railway system should be well-coordinated with that of light rails on streets.... By developing coordination between underground railways and light railway system the railway system in the London city can be well integrated with road transportation system also....

tley (1999) suggests that the budgetary control process provides an encompassing framework through which all aspects of an organization's activity are summed up into a single set of financial statements but at the same time It acts as a valuable source of monitoring the actual outcomes with the budgeted and also helps to identify and eliminate the inefficiencies in organization performance, for example.... n some types of businesses where there is a rapid change in current environmental conditions because of any economic or social factors, frequent budget changes are avoided because budget revision is considered as time-consuming and loss in budgetary control....

The essay "The Annual budgetary Process" explains a very lengthy process that takes several weeks in order to develop a valuable plan that is used for the whole year and is not revised until the next year.... hellip; Summing it up, annual budgetary process is of critical importance for any company or organization because it not only helps the organizations in improving current strategies but also sets up the ways to improve future dimensions of the strategies by comparing the past year's performance and the budgetary performance which results in improved organizational performance and increased productivity....

We have three methods of budget control and systems (Hofstede, 2001).... Product cost and budgetary control methodologies and system: Budgets are plans of activity records kept of a given period, containing formal, quantitative documents and statements of company's resources.... This budgetary control shows the difference between the actual results and the budget, noting the differences down and then accounting for them.... c) Control centres It prepares the budget within the business groups by creating budgetary control centres....

The main activities in companies include control and planning, and budgets are the centre of these activities.... This budget needs to be prepared carefully because other components of the master plan rely on it; otherwise the master budget will be ineffective for control and planning purposes.... Budgets are crucial control systems that show estimates of expenses and revenues of a company over a certain period of time.... What makes this company successful is the efforts made in the budgetary process....

This system of costing offers an alternative method to ascertain the accurate costs.... It traces the resources costs to the Through focusing on the activities instead on the departments, activity based costing allows the management which is activity based, to become an active catalyst for the improvement of product quality and business procedure reengineering (Lewis, 1995).... It provides exactness in the costing process in relation to the end-customers of product, product line, the inventory-keeping units utilized by the organization and the category and channels which reorganize the product flow from the manufacturer to the end customer....

As the delays are minimized by risk management and minimizing the project cost is done by costing the importance of risk management and costing is working on them simultaneously.... The first project in enhancing the capacity of the transport system in London is the Channel Tunnel Rail Link as this enables the international services between London, Paris, and Brussels and increases the local transport by 25,000 commuters per hour.... ( NASA, 2006)This transport modernization report concentrates on the increase in infrastructure and control issues to reduce the jams and blockades on London roads in the context of special and important events like the Olympic Games....