OVERVIEW OF EXPENDITURE CONTROL

OVERVIEW OF EXPENDITURE CONTROL

Expenditure control involves the regulations, limitations of confinement to expenses to minimize over spending and ensure compliance with specified plans of the organisation. Expenditure control also means the management tools that guides and ensure that the organisational spending are in accordance with the policy plans and for the achievement of organisational goals and objectives.

For expenditure control to be effective, it must have a dual purpose, viz:
a) It must attempt to keep, misappropriation, inefficiency and other expenses under check.

b) It must allow for re-allocation of system of record which will establish accountability for expenses, the employment of current and concise accounting and statistical report to reveal their duties.

Expenditure control is also the regulation of cost of operating s business and is concerned with keeping the costs within acceptable limits. Expenditure control can be seen as an exercise in good managerial activities by avoiding wasteful use of valuable resources and encouraging efficiency and cost consciousness.

However, expenditure control is the process of ensuring that firms activities conform to its plan and that its objectives are achieved. There can be no control without plans and objectives, since these predetermine and specify the desirable behaviour and set out the procedure that should be followed by members of the organisation to ensure that a firm is operated in a desired manner. Expenditure control encompasses all the methods and procedures that direct employees towards achieving the organisational objectives.

Therefore, the aim of expenditure controls is to influence the employees behaviours in desirable ways in order to achieve the organisations goals and objectives and in order to increase profitability.

REFERENCES

Adeniji, A. A (2009). Cost accounting: a managerial approach. Lagos. El Today Ventures Limited publishers.

Ama, G. A. N (2001). Management and cost accounting: current theory and practice. Abia. Amasons publishers ventures.

Asika, S. D. (2001). Loss Prevention, control and concepts, London: Butter Worst Publisher.

Hermanson, E. S (2002). Accounting principle. Columbia Charika Publisher.

Howard, F. (2003). System Based Independent Audit. New Jersey: Prentice Hall Inc.