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Indirect production personnel. The number of each type or grade of employee required in each production or service budget centre, in relation to the planned production, is scheduled and submitted to the personnel manager who should report any possible shortages. Personnel relating to other functions. The scope of the responsibilities of the personnel department varies from company to company. In some organisations the personnel manager is responsible for the engagement not only of workpeople but also of office staff and senior executives up to a specified level, whereas in others his function only covers workpeople including despatch department personnel.
Functional Budgets 55 Budgeting selling expense. , to employ so many salesmen at known remuneration scales.
B) Thirteen four-weekly periods. , it equalises the control periods and budgeted annual expenses may be evenly apportioned. Budgeted production and sales figures may also be equally apportioned provided these activities are planned to proceed constantly through the year. Difficulties are (i) the thirteen periods comprise 364 days, leaving one, or sometimes two, days excluded. (Some companies allow these extra days to accumulate and an extra week is added each five or six years), (ii) the budget year does not coincide with the financial year, Long- and Short-Tenn Planning 29 (iii) control periods do not coincide with the periods to which certain costs relate; for example monthly salaries, (iv) the purpose of having control periods of equal duration is often frustrated because periods are shortened by national holidays and by industrial disputes.