Budgetary control involves establishing budgets for different departments and periods, continuously comparing actual performance to budgets, and taking corrective actions to achieve objectives. It helps coordinate activities, control costs, maximize profits, eliminate waste, and improve efficiency. Budgetary control is an important management tool that involves planning, coordination, and controlling business decisions through the preparation and use of budgets.
A formal statement of the financial resources set aside for carrying out specific activities in a given period of time. A budget is prepared for the effective utilization of resources. It is based on the implementations of a forecast and related to planned events.
A Study on Budgetary Control System conducted at Hassan Cooperative Milk Prod...Projects Kart
A Study on Budgetary Control System conducted at Hassan Cooperative Milk Producers Societies. One the primary functions of the management is planning. Most of the planning relates to individual situations and individual proposals. However, this has to be supplemented and reinforced by overall periodic planning followed by continuous comparison of the actual performance with the planned performance. Budgetary control has, therefore, become as essential tool of management for controlling costs and maximizing
“Budget” and “Budgeting” are concepts traceable to the bible days, precisely the days of Joseph in Egypt. It was reported that “nothing was given out of the treasure without a written order”. History has it that Joseph budgeted and stored grains which lasted the Egyptians throughout the seven years of famine.
Budgets were first introduced in the 1920s as a tool to manage costs and cash flows in large industrial organizations. Johnson states that it was during the 1960s that companies began to use budgets to dictate what people needed to do. In the 1970s performance improvement was based on meeting financial targets rather than effectiveness. Companies then faced problems in the 1980s and 1990s when they were not willing to spend money on innovations in order to stay with the rigid budgets; they were no longer concerned about how customers were being treated; only meeting sales targets became essential.
Classification of budget according to Time, Function and Flexibility. Long term budget, Short term budget, Long term budget, Short term budget, Sales budget, Production budget
A formal statement of the financial resources set aside for carrying out specific activities in a given period of time. A budget is prepared for the effective utilization of resources. It is based on the implementations of a forecast and related to planned events.
A Study on Budgetary Control System conducted at Hassan Cooperative Milk Prod...Projects Kart
A Study on Budgetary Control System conducted at Hassan Cooperative Milk Producers Societies. One the primary functions of the management is planning. Most of the planning relates to individual situations and individual proposals. However, this has to be supplemented and reinforced by overall periodic planning followed by continuous comparison of the actual performance with the planned performance. Budgetary control has, therefore, become as essential tool of management for controlling costs and maximizing
“Budget” and “Budgeting” are concepts traceable to the bible days, precisely the days of Joseph in Egypt. It was reported that “nothing was given out of the treasure without a written order”. History has it that Joseph budgeted and stored grains which lasted the Egyptians throughout the seven years of famine.
Budgets were first introduced in the 1920s as a tool to manage costs and cash flows in large industrial organizations. Johnson states that it was during the 1960s that companies began to use budgets to dictate what people needed to do. In the 1970s performance improvement was based on meeting financial targets rather than effectiveness. Companies then faced problems in the 1980s and 1990s when they were not willing to spend money on innovations in order to stay with the rigid budgets; they were no longer concerned about how customers were being treated; only meeting sales targets became essential.
Classification of budget according to Time, Function and Flexibility. Long term budget, Short term budget, Long term budget, Short term budget, Sales budget, Production budget
Presentasi ni saya susun dan bawakan dalam sesi Panduan Internet Bijak dalam Pelatihan "Pemanfaatan TIK dalam Pendidikan"
bertempat di PPm Ar-Rasyid, Labuhanbatu Selatan. Tanggal 3 Nov 2012
Budget control and budget making techniques in a hospitalmeghadevgan3
budget control and budget making techniques in a hospital:
1.definition of budget
2.DIFFERENCE BETWEEN BUDGET, BUDGETING AND BUDGET CONTROL
3.THREE THINGS BUDGET NEEDS TO DO
4.PRINCIPLES OF GOOD BUDGETARY CONTROL
5.TYPES OF BUDGETS
6.BUDGET CONTROL
7.BUDGET COMMITTEE
8.STEPS IN THE BUDGETORY PROCESS
9.ROLE OF ADMINISTRATOR IN BUDGETING
10.BUDGETING TECHNIQUES
11.WHY BUDGETING IN HEALTH IS COMPLICATED?
Management Accounting studies the preparation and use of cost accounting information for managerial decision-making and control purposes. This course provides students with the tools needed to understand and address the important problems facing management accountants today. In order to keep up with the class, students should go over the relevant chapters and problems prior to each class. This must then be followed by a more in-depth review of the material and practice of problems after the class.
Topics :
System and process of controlling
Budgetary and non-budgetary control techniques
Use of computers and IT in Management control
Productivity problems and management
Control and performance
Direct and preventive control
Reporting
Discuss budgetary control as a technique of cost control
Abstract
1. Budget<br />A theoretical overview concept of budget<br />Budget is an important task of planning and control. It is based on the idea of plan. It is planning relating to a period of time expressed in monetary or quantitative terms. It is also serves as a basis for performance evaluation. It is prepared for a definite future period. It implements the policies formulated by management for affirming to given objectives, preparing charts, budgetary control.<br />Budget, inclusive list of proposed expenditures and expected receipts of any person, enterprise, or government for a specified period, usually one year. Budget estimates are based on the expenditures and receipts of a similar previous period, modified by any expected changes. The governmental budget originated during the late 18th century in England.<br />A budget is a detailed plan of operations for some specific future period. It is an estimate prepared in advance of the period to which it applies. It acts as a business barometer as it is a complete program of activities of the business for the period covered. Budgets are nothing but the expressions largely in financial terms of management’s plans for operating and financing the enterprises during specific period of time.<br />The essential of a budget in an organization includes.<br />It is prepared in advance and is based on a future plan of actions.<br />It relates to a future period and is based on objectives to be attained.<br />It is a statement expressed in monetary and or physical units prepared for the implementation of policy formulated by the management.<br />According to J.G BLOCKER: The budget is a detailed schedule of the proposed combination of the various factors of production which the management deems to be the most profitable for the ensuring period.<br />According to GROWN AND HOWARD: The budget is a predetermined statement of management policy which provides a standard for comparison with results actually achieved.<br /> BUDGET-DEFINITION<br />“A financial and for quantitative statement, prepared prior to a defined period of time, of the policy to be pursued that period for the purpose of staining a given objective”.<br /> -Institute of Cost & Management Accounting, London<br />NEED FOR BUDGETING<br />Budgeting is essential to co-ordinate the activities of the various department in the organization is profit maximization. This could be achieved only with the co-ordinate efforts of different department like sales, marketing, purchase, stores, production, finance etc.,<br />Budgeting is used properly act as motivating tool to employees. It serves as a motivational approach and steers the employees to work harder with sincerity. Hence, budgeting is an important function of management.<br />BUDGETARY CONTROL <br />A theoretical orientation concept of budgetary control.<br /> “ The establishment of budgets relating to the responsibilities of executive to the requirement of policy and the continuous comparison of actual with budgeted, result either to secure by individual action, the objective of the policy or to provide fore a revision”.<br /> -Institute of Cost & Management Accounting, London<br />Budgetary control involves the use of company annual budgetary report. Evaluate and control day-to-day operation in accordance with the budgets. Preparation of budget with proper planning and co-ordination. Control purpose, which will bring maximum advantage to the concern. <br />Budgetary control embraces all and in addition includes the science of planning the budgets themselves and utilization of such budgets to effect an overall management tool for the business planning and control. Budgetary control has therefore become an essential tool of management for controlling costs and maximizing profits.<br />Thus, budgetary control involves the following,<br />Establishment of budgets.<br />Continuous comparison of actual with budgets for achievement of targets and placing the responsibility for failure to achieve the Budget figures.<br />Revision of budgets in the light of changed circumstances.<br />According to HOWARD: Budgetary control is a system of coordinating costs which includes the preparation of budgets, coordinating the work of the department and establishing responsibilities, comparing the actual performance with the budgeted and acting upon results to achieve maximum profitability.<br />Budgetary control is the process of ascertaining several budgeted figures for the future of a business enterprise and then making comparison of these budgeted figures with the actual results for finding out discrepancies, if any. The comparison of budgeted and actual figures will allow the management to take curative actions at a proper time. <br />Budgetary control can be defined as, “A means of achieving the financial control of an entity whereby the actual results for a defined period of time are compared with the budgeted results, any differences (or variances) being noted, and some corrective action taken to bring the actual activities back into line with the budgeted ones if such variances need to be dealt with.”<br /> Budgetary control is a continuous process that helps in planning, coordination and controlling of business decisions. A budget is a means and budgetary control is the end-result. The budgetary control system assists an organization in setting up the goals and efforts are made for its achievements. It enables economies in the enterprise. The main objectives of budgetary control are as follows: <br />It is essential for planning, controlling and also acts as an instrument of coordination.<br /> It coordinates the actions of various departments.<br />Budgetary control helps in eliminating wastes and raises the profitability position of a business enterprise.<br />It makes a prediction about capital expenditure for future.<br />It helps in amending deviations from the established standards.<br /> It centralizes the control system.<br /> Budgetary control operates various cost centers and departments with efficiency and economy.<br />Budgetary control compels business administration to think about the future that is most likely the crucial characteristic of this system. It coerces management to look into future, to outline thorough plans for attaining the objectives for each department, operation and each manager, to predict and grant the organization purpose and direction.<br />Principles of budgetary control<br /> Establishing a plan and target performance.<br /> To co-ordinate all business activities.<br /> Recording of actual performance of the concern.<br /> Comparison of actual with the variance.<br /> Taking final decision.<br />