Answer to Question #68440 in Accounting for Lakakna

Question

what category of budgets are the governance board more likely to be interested in?

with a long-term view, which specific two budgets are the most relevant to the governing board and for what reason?

A new governance board member is constantly asking the accountant questions about the motor vehicle expenses that are constantly over budget. They blame one of the business managers who they dislike and point to the fact that the manager has an unnecessary sports pack on their car. What type of budget does the motor vehicle expense belong to? Who is responsible for this budget? What steps would you take if you were the accountant?

Answer 1

The overall budget and administrative costs. Since they contain information on operating expenses such as administrative salaries, office expenses and depreciation.
The general budget and development budget. In general, the budget contains information on the expected return on plan period. Development budget is a planning a new project within an existing business. These budgets are drawn up in the long term to support the business development strategy.
Transportation costs include business manager for commercial budget. The basis for planning budget expenditures commercial application management agreement with the CEO. All costs exceeding planned costs are paid only with permission additional general manager. This accountant should ensure that actual costs do not exceed the planned costs.