Budgetary control is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out variances, if any. The comparison of budgeted figures with actual figures will help the management to find out variances and take corrective actions without any delay.
Budget, Budgeting, Budgetary Control Budget, Budgeting, Budgetary Control A budget is a financial and quantitative statement of an operational plan related to a specific time period, which is to be followed during the budgeted period in order to achieve specific financial objectives of an organization.
Budgeting Budgeting refers to the process of preparation, implementation and operation of budgets. It involves formulation of operational plans for a given future period and expressing it in monetary terms. Short Term Budget — Budget prepared for a period of 1 to 2 years. Current Budget — Budget prepared for a period of less than 6 months.
On the Basis of Activity Fixed Budget — Budget that is fixed for a given level of activity or time period and does not change with changing business situations.
Flexible Budget — Budget that is flexible and can be revised from time to time according to the changing business needs and situations.
On the Basis of Nature of transaction Capital Budget— Budget prepared for the capital expenditures of a business. Operating Budget — Budget prepared to meet the day to day expenses of a business.
On the Basis of Functions Master Budget — Various functional budgets are integrated together to form a master budget. Financial Budgets — Budgets related to various costs and revenues of the organization.Budget, Budgeting, Budgetary Control A budget is a financial and quantitative statement of an operational plan related to a specific time period, which is to be followed during the budgeted period in order to achieve specific financial objectives of an organization.
Advantages of budgeting and budgetary control There are a number of advantages to budgeting and budgetary control: · Compels management to think about the future, which is probably the most important feature of a budgetary planning and control system.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime. Effective budgeting leads to real control – effective day-today operational control and more.
Budgeting & Budgetary Control Methods Capital Market Analysis and Investment Management Certificate in International Financial Reporting Standards International School of Management (ISM), Lagos.
Budget vs Budgetary Control: Budget is an estimation of revenues and costs for a period. Budgetary control is the process where budgets are prepared at the beginning of the accounting period to compare and analyze the actual results at the end of the accounting period.
About the Programme. All organisations need to manage performance so that their financial and strategic objectives are achieved and management and financial stakeholders can be confident in the associated control processes.