budgetary control and its objectives

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budgetary control

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BUDGET AND budgetary control and its objectives:

BUDGET AND budgetary control and its objectives

introduction:

introduction Budgetary control is the establishment of budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results. This is either to secure by individual action the objectives of that policy or to provide a basis for its revision.

What is budget :

What is budget A budget is a plan expressed in quantitative, usually monetary term, covering a specific period of time, usually one year. In other words a budget is a systematic plan for the utilization of manpower and material resources.

definition:

definition Budgetary control Budgetary control is a system of controlling costs which includes the preparation of budget, coordinating the department and establishing responsibilities ,comparing actual performance with the budgeted and acting upon results to achieve maximum profitability.

Objectives of budgetary control:

Objectives of budgetary control Budgetary control is essential for policy planning and control, it also acts as an instrument of coordination of the main objectives of budgetary control are as follows

objectives:

objectives To ensure planning for future by setting up various budgets the requirements and expected performance of the enterprise and anticipated. To coordinate the activities of different departments. To operate various cost centers and departments with efficiency and economy. Elimination of wastes and increase in profitability.

objectives:

objectives To anticipate capital expenditures for future. Correction of deviations from the establish standards. To centralize the control system. Fixation of responsibility of various individuals in the organization.

Organization for budgetary control:

Organization for budgetary control

conclusion:

conclusion All business activities, budgeting is one of the most important and, therefore, requires detailed attention. the concept of responsibility centres.It then goes on to look at the detail of budget construction and the use to which budgets can be put.

THANK YOU:

THANK YOU

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