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MGMT 601 Week 6 What is the primary financial control tool used to manage the operations of an orga

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MGMT 601 Week 6
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?
Answer
The primary financial control would be a budget. To begin a budget allows projections
regarding what could be made and what might be spent, it is the basic measurement for an
organizations performance, because it is the only tool that allows a comparison to what was
made and what was spent against the projections. A budget puts so much in the hands of the
person handling it. The budget can say if a new item can be added or if new employees can
be hired.
The text covered four important ways that a budget can assist a manager they are:
1. It will speed up the process of finding funds and putting them into new projects.
2. It operates as a monitor of supplemented and periodic updates.
3. It sets limits on funds which sets guidelines for managers.
4. It allows for adjustments and makes a way to monitor an individual’s or a
department’s performance against what should be made, spent and lost.
Three examples of financial control being used to make decisions.
Personally I have used my budget to know if I could afford to give a few employees
overtime because I had some extra things that needed covering, but when I looked at the

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budget it was not available that week so I was able to project and set a goal to make the
funds needed for overtime to be done two months later.
I have also seen where a budget was used to layoff people and to hire people. The budget
has to be looked at for almost everything done in business which is why it is strongest
financial tool available. It has been reviewed when a new service or product comes up, if
the funds are available then it could be implemented but if it is not in the budget you will
have to put it off for a while but with the tracking of the budget you will know exactly
when the time is right.

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MGMT 601 Week 6 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? Answer The primary financial control would be a budget. To begin a budget allows projections regarding what could be made and what might be spent, it is the basic measurement for an organizations performance, because it is the only tool that allows a comparison to what was made and what was spent against the projections. A budget puts so much in the hands of the person handling it. The budget can say if a new item can be added or if new employees can be hired. The text covered four important ways that a budget can assist a manager they are: 1. It will speed up the process of finding funds and putting them into new projects. 2. It operates as a monitor of supplemented and periodic updates. 3. It sets limits on funds which sets guidelines for managers. 4. It allows for adjustments and makes a way to monitor an individual's or a department's performance against what should be made, spent and lost. Three examples of financial control being used to make decisions. Personally I have ...
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