An intelligent decision makers dealing
with uncertainty like to the size and nature of the
risk they are taking in choosing a course of action.
One of the deficiencies in using the traditional approaches
of operations research for problem solving is that many
of the data used in a model are merely estimates and
others are based upon probabilities. The ordinary practice
is to have staff specialists come up with “best
estimates.” However, new techniques have been
developed that give a more precise view of risk.
Virtually every decision is based on
the interaction of important variables, many of which
have an element of uncertainty but, perhaps, a fairly
high degree of probability. Thus, the wisdom of launching
a new product might depend on a number of critical variables;
the cost of introducing the product or technology, the
cost of producing it, the capital investment needed,
the price that can be set, the size of the potential
market, and its share of the total market.
Here, the investment is very low and
return is very high. Physically there is no risk and
our innovative project and system assure a smart income
in respect of smart work.
Expenditure and Income Chart
A widely used control of overall performance
takes the form of a summary of budgets. A budget summary,
being a resume of all the individual budgets, reflects
company plans so that sales volume, costs, profits,
utilization of capital, and return on investment may
be seen in their proper relationship. In these terms
it shows top management how well the company as a whole
is succeeding in meeting its objectives.
the best control through a budget summary, a manager
must first be satisfied that total budget is an accurate
and reasonably complete portrayal of the plans. The
manager should study the budget reports and any material
accompanying them to determine whether the comparison
of budget and actual costs shows the real nature of