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Budgets & Budgetary Control

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Slide 1: 

Budgetary Control Anjana Mtech S1.

Introduction : 

Introduction Management Functions. Planning. Directing and Motivating Controlling.

Slide 3: 

Budgeting is part of planning

BUDGET(cont..) : 

BUDGET(cont..) A budget is a financial plan for a business prepared in advance. A budget may be set in In money terms. In terms of units.

BUDGET(cont..) : 

BUDGET(cont..) Budget can be Income budget Expenditure budget Features. 1.Financial & Quantitative statement. 2.Laid prior to the buget period. 3.Based on the management policy.

Types of budget : 

Types of budget 1.Time 2.Conditions 3.Capacity 4.Coverage period a. Long term a. Basic budget a. Fixed a. Functional b. Short term b. Current budget b. Flexible b. Master

Slide 8: 

LONG TERM BUDGET. Prepared for periods longer than a year, SHORT TERM BUDGET. Prepared for period less than a year.

Basic budget & Current budget. : 

Basic budget & Current budget. BASIC BUDGET. Remains unaltered for a longer period of time. CURRENT BUDGET. Established for a short period of time and related to current conditions.

Fixed Budget. : 

Fixed Budget.

Flexible budget. : 

Flexible budget.

Functional & Master budget. : 

Functional & Master budget. FUNCTIONAL BUDGET. Relate to individual functions of an organization. MASTER BUDGET. Consolidated summary of various functional budgets.

BUDGETARY CONTROL : 

BUDGETARY CONTROL Budgetary control is the establishment of budgets relating to responsibilities of executives to the requirement of a policy and the continuous comparison of actual with budgeted results

CONCEPT OF BUDGETARY CONTROL : 

CONCEPT OF BUDGETARY CONTROL

Advantages : 

Advantages Maximization of Profit. Co-ordination. Specific Aims. Tool for Measuring Performance. Economy.

Advantages(cont…) : 

Advantages(cont…) Determining Weakness. Corrective Action. Consciousness. Reduces Costs. Introduction of Incentive Schemes.

Disadvantages : 

Disadvantages Estimate. Rigidity. False sense of security Lack of coordination Time and Cost.

Disadvantages : 

Disadvantages

Slide 21: 

SO YOU KNOW WHERE IT WENT

Slide 22: 

THANK YOU