What is the primary financial control tool used to manage the operations of an organization and how can it equip managers with the information they need to make decisions? How are financial controls different for a global organization? Provide three examples.
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The primary control tool used to manage the operations of an organization is the budget. It can equip managers with the information they need to make decisions because it provides an estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals. It equips managers with information because it has a plan of action, has a standard for measuring performance, and provides information for coping with predictable unfavorable situations(b). A budget gives managers information required for decision making by giving them the expecte sales volumes/revenues, costs and expenses, assets, resource quantities, assets, liabilities, and ...
This posting gives you a step-by-step explanation of primary financial control tool. The response also contains the sources used.