This article throws light upon the two main tools of financial control. The tools are: 1. Financial Audit 2. Financial Ratio. Tool # 1. Financial Audit: Another effective control technique is the use of audits, which seek to examine activities or records to verify their accuracy or effectiveness. Financial information is only as good as data and interpretation on which [...]
Break-Even Analysis: Another form of financial analysis is breakeven analysis. It is a technique for finding a point at which a project will cover its costs, or break even. It is often used to make an initial decision on whether to proceed with a project. Breakeven analysis is also a technique of financial control in the sense that further analyses [...]
This article throws light upon the eight major characteristics of effective control system. The characteristics are: 1. Integration with Planning 2. Flexibility 3. Acceptance by Members of the Organisation 4. Focus on Critical Activities 5. Timeliness 6. Economic Feasibility 7. Accuracy 8. Ease of Understanding. Characteristic # 1. Integration with Planning: First, to be effective, control systems should be integrated [...]