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Masters of Business Administration Notes


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Cost Volume Profit Analysis

The cost-volume-profit analysis calls for the separation of variable cost from fixed cost with a view to understanding the anatomy and structure of a company's profit.

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Cost control

In contrast to general accounting which maintains records of manufacturing cost and other operational costs on an overall basis, the cost accounting system is designed to provide the manager with information for determining the cost of processes or operations and for exercising cost control in many directions.

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Some specific advantages of Budgetory Control

Following are some specific advantages or budgetary control

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Benefits of Budgetory Control

Budgetary control leads to maximum utilisation of resources with a view to ensure maximum returns because it provides aid to managerial planning an control.

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Function of Budgets

Thus, there can be master budgets besides budget for each function and sub-function.

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Types of Budgets

Since budgets express plans and an organisation may have a large variety of plans, there are many types of budgets.

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Bugetory control

The word budget is derived from “Bougettee”, a French word denoting a leather pouch in which found are appropriated for meeting anticipated expenses.

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Points of control area

The following discussion points out the problems and methods of control in each major area

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Control Area

For effective control, it is important to know what are the critical areas where control would be exercises.

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Importance of Control

The importance of control can be indicated by listing the following benefits of controlling

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Basic Steps in the Controls Process

There are three elements, phases of steps involved in the control process

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Types of Control

There are some types of control

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Controls is concerned with securing good individual performance and organisational performance.

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Organization members are to be persuaded and inspired for contributing their efforts towards the achievement of enterprise objectives. Accordingly, every member is to be provided with a personal incentive for work accomplishment.

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Function of human relations

In the directing function of management

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Human relations

Research on human relations has indicated that there are some peculiar characteristics of human behaviour.

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Importance of leadership in Management

There are some Importance of leadership in Management

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