Budgeting

1,379 views

Published on

1 Comment
2 Likes
Statistics
Notes
No Downloads
Views
Total views
1,379
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
79
Comments
1
Likes
2
Embeds 0
No embeds

No notes for slide

Budgeting

  1. 1. BUDGET, BUDGETING & BUDGETARY CONTROL<br />Sujoy Kr Paul<br />
  2. 2. BUDGET<br />French word ‘bougette’ means leather pouch.<br />In which funds are appropriated for meeting anticipated expenses.<br />Monetary or quantitative expression of plan & policies of operations for specific future period,<br />Targets to be achieved within a specific period,<br />
  3. 3. definition<br />“Budget is an estimate of future needs arranged according to an orderly basis, covering some or all of the activities of an enterprise for definite period of time”- GEORGE R. TERRY<br />“a financial and /or quantitative statement, prepared prior to a defined period of time, of the policy to be pursued during that period for the purpose of a given objective”-ICMA <br />
  4. 4. BUDGETING<br />Process of preparing budgets,<br />Study of business situations,<br />Understanding the management objectives,<br />Understanding the capacity of enterprise.<br />“ The entire process of preparing the budgets is known as budgeting”-BATTY<br />“Budgeting may be said to be the act of building budgets”-ROLAND & HARR<br />
  5. 5. Budgetary control<br />“Budgetary control is a system of controlling costs which includes preparation of budgets, coordinating the department, establishing responsibilities, comparing actual performance with the budgeted, and acting upon the results to achieve maximum profitability”-BROWN & HOWARD<br />
  6. 6. ICMA defines<br />“ The establishment of budgets, relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of the actual with the budgeted results either to secure by individual action the objectives of the policy or to provide a basis for its revision”<br />
  7. 7. characteristics<br />Establishment<br />Coordination<br />Continuous comparison<br />revision<br />
  8. 8. Objectives<br />Planning<br />Coordination<br />Efficiency & Economy<br />Increase in profitability<br />Anticipation of future capital expenditure,<br />Control<br />Deviations<br />
  9. 9. Advantages<br />Economy in working<br />Buck –passing avoided,<br />Establishes coordination,<br />Guard against undue optimism,<br />Acts as a safety signal,<br />Adoption of uniform policy,<br />Decrease in production costs,<br />Adoption of standard costing principles,<br />Management by exception,<br />Optimum mix<br />
  10. 10. LIMITATIONS<br />Opposition against the very spirit of budgeting,<br />Budgeting & Changing economy<br />Time factor,<br />Not a substitute for the management,<br />Cooperation & coordination required,<br />Revision required,<br />Uncertainty of futures<br />Depends upon the support level of management,<br />Budgetary revision required<br />

×