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Analysis of Cost and Budgetary Information Systems

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More than often, the levels of decision-making are classified as operational, tactical and strategic levels. Nonetheless, decisions made at each level play an important role in product costing and budgetary control, as relevant information is transmitted in order to make an organization successful. More so, successful management decision-making ensures that managers remain responsible as they set up decisive decisions based on effective planning, controlling, staffing and organization as a way of achieving set objectives. As a result, decision making at every level of management remains as an integral part of management within the organizational structure.

Considerably, managers at various levels of management have the ability to analyze and make appropriate recommendations based on decisions made in relation to the budget according to set down hierarchical structure of management (Koontz & Weihrich, 2007). More significantly, the strategic level of management is made up of top-level management who are involved in developing long-term plans that are of high-level qualitative nature as it affects the daily running of company’ s cost and budgeting activities. As the highest level of management, its output focuses on requests for the performance levels of the organization.

The strategic level has yearly production quotas that identify best product mix and policies on cost and budgetary information system replacement and modernization. Noticeably, the strategic level is made of the board of directors and other heads of functional divisions dealing with finance, marketing, production and human resources activities within an organization (Kerzner, 2009). Considerably, the top management allows for the establishment of directional long-term strategic policies focused on purposefully driving the success of company’ s future direction. More so, the top-level management bases their strategic decisions on information that is mainly collected from sources outside the company that mainly relates to competition, market trends and, new product developments.  

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