Finance_Accounting

Finance_Accounting.

 “Budgeting”

Analyze the major pros and cons of preparing annual company budgets. Identify at least two (2) critical budget line items that you believe are essential for managing your company. Provide a rationale for your response.

One way to monitor a company is to break it into different centers or business units. For example, a Revenue Center oversees the sales teams while the Cost Center focuses on making the product or delivering the services. If the company maintains a store or locations that handle both revenue and costs, this is called a Profit Center. Managers of each center have their own budgets and are held accountable for achieving it. Analyze the most common responsibility reporting systems.

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From your analysis, argue at least one (1) pro and one (1) con of using responsibility reporting systems.

Remarks: Please be detailed, clear and concise and ensure that references are cited using the APA format.

Finance_Accounting

 
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