This document discusses key aspects of financial management and budgeting. It covers topics like the judicious use of capital, cost benefit analysis, ensuring optimal fund utilization, budgeting methods, accounting, charging policies and rates, and reporting. The document provides an overview of these financial concepts in management and explains processes like budgeting, defining cost elements, setting charging rates, and addressing costs in regular customer meetings.

1. By-
Ashish Agrawal
Shri Ram Murti Smarak College Of Engineering &
Technology,Bareilly,
INDIA

2. FINANCIAL MGMT.
• A judicious use of capital & a careful selection
of sources of capital , in order to enable a
spending unit to move in the direction of
reaching its goals.
• Cost benefit analysis to achieve best quality.
• Ensures optimum fund utilization

3. Growth of funds
Allocation of
funds
Creation of
funds

4. BUDGETING
• Planning & controlling the activities of an
organization.
• Financial plans for the objectives during the period
covered by budget
• Predicted on the base of historical data otherwise
market or assumptions.

5. Budgeting methods-
1.Incremental-last year figures are used as the basis
for new budget.
2.Zero base-starts with a blank piece of paper-zero
base. Every expense has to be evaluated & decided
if it should be made, as well as what the cost should
be.

6. Budgeting process-
• Sales and marketing budget
• Production budget
• Administrative budget
• Investment budget

7. ACCOUNTING
• Defining the cost elements
• Cost element structure should be compatible with the
methods adopted by business
• How the organization will spend the money
• Amount for particular activities

8. CHARGING
• For internal costs
• Related to billing for activities in organization as –
internet connection
• billing customers for the delivered services in order
to recover revenue
• To recover all the costs incurred

9. Charging policy-
• Communication of information
• Pricing flexibility
• Notional charging

10. Rates-(Setting of Rates)
• Determining market rates
• Analyzing demand for services
• Analyzing number of customers and the
competition
• Determining direct & indirect costs

11. REPORTING
Costs are addressed in the regular meetings with
the customer under the SLM . Hence , SLM is
provided with-
• IT services expenditure per customer.
• Charging & accounting methods used.
• Difference between estimated & actual charges.
• Charging disputes with causes & solutions.

12. THANK YOU