You are here

COST CENTERS

6 May, 2015 - 17:10

A budget is the tool used for planning and controlling costs. It represents a written statement of management's plans for the future in financial terms. Budget performance reports are prepared to compare actual results with budgeted figures. It is the management's responsibility to investigate variances, determine their cause, and suggest improvements. Often there are good explanations for these variances, and variances do not necessarily reflect poor management.