Presentation Transcript
THE BUDGET AS CONTROL TECHNIQUE :THE BUDGET AS CONTROL TECHNIQUE BY
DEEPAK.G
GOPALAKRISHNAN
Slide 2:CONTROL TECHNIQUES INTRODUTION:
A variety of tools and techniques has been used to help the managers control the activities in their organization.
(a) Traditional techniques.
(b) Modern techniques.
Slide 4:“ A budget is the expression of a firm’s plan is financial form for a period of time into the future”
-- J.Fred Meston BUDGET
BUDGETARY CONTROL :BUDGETARY CONTROL Budgetary control is the process of determining various budgeted for the business unit for a future period.
DEFINITION OF BUDGETARY CONTROL
“A system which uses budgets as means of planning and controlling all aspects of producing and selling commodities and services”
OBJECTIVES OF BUDGETARY CONTROL: :OBJECTIVES OF BUDGETARY CONTROL: Maximization of profit
Control expenditure
Adequate working capital
Improves the planning
Find outs the weak area of operations
PROBLEM AND LIMITATION :PROBLEM AND LIMITATION Inflexibility
Inaccuracy
Distortion of goals
Hiding inefficiencies
Expenditure
Effective budgetary control :Effective budgetary control Objectives
Support of top management
Flexibility
Budget committee
Education
Feedback
Participation
Communication
Reward and punishment
Slide 9:BUDGET FUNCTIONAL TIME ACTIVITY
Slide 10:FUNCTION Capital Purchase Master Production SALES Cost Profit
Slide 11:TIME SHORT-TERM
CURRENT
LONG-TERM
Slide 12:ACTIVITY Flexible Fixed
Slide 13:The planning program me budgetary system (PPBS)
Zero-base budgeting
Human resources accounting BUDGET CONTROL METHODS