Chapter 9: Budgetary Control

What is budgetary control?

What is a key aspect of budgetary control?

What are controllable and uncontrollable costs? Give examples for each.

What is feedback control?
What type of system is it?

What is negative/positive feedback?

What is feedforward control?

What type of system is it?

What is a fixed budget?

What is a flexible budget? What are the 2 key benefits of this?

What is a flexed budget?

What happens to fixed costs?

How are variable costs calculated?

What happens to semi-variable costs?

What should managers always compare performance against in budgetary control systems?

What are the benefits of top down (imposed) and bottom up (participative) budgets?

If a budget is to have an influence on performance, what must happen? What if it is too easy/difficult. What is optimal?

What are some of the reasons for budgets causing unethical behaviour?

What are some of the implications of unethical behaviour caused by budgets?