budgetingbudgetarycontrol-140910122354-phpapp02.pptx

8/18/2019 budgetingbudgetarycontrol-140910122354-phpapp02.pptx

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Budgeting &

Budgetary Control

Submitted by:

(MBA Ist SEM.)

• Chetna prasad

• Shikha pathak

• Chitra totani

• Shilpi !an"hal


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Contents

• Budgeting #"hara"teristi"s$

• Budgetary "ontrol

• %ieren"e in budget' budgeting' budgetary

"ontrol

• Essentials in budgetary "ontrol

• euisites *or budgetary "ontrol system

• Merits & limitations

• +ero,based budgeting

• %ieren"e in -raditional & +ero based budgeting.


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Defnition & Meaning oBudgeting

A budget is a pre,determinedstatement o* management poli"yduring a gi/en period hi"h pro/ides

a standard *or "omparison ith theresults a"tually.0

,Bron & 1oard

Budgeting is a preparation o*"omprehensi/e operating and2nan"ial plans *or spe"i2" inter/als

o* time0


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Characteristics o goodBudgeting

.


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Defnition & meaning oBudgetary Control

Budgetary "ontrol is a system hi"huses budgets as a means o* planning

and "ontrolling all aspe"ts o*produ"ing3selling "ommodities orser/i"es0

,4 Batty

A budget is a means and budgetary"ontrol is the end result0


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Essentials o BudgetaryControl

5rgani6ation *or budgetary "ontrol.

Budget "enters

Budget o7"ers3"ommittee

Budget manual

Budget period


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Organization chart orBudgetary Control

Chie ExecutiveBudget committeeProduction managerAccounts managerPersonnel manageresearch & develo!ment manager


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e"uisites or BudgetaryControl #ystem

Clari*ying ob8e"ti/es

!roper delegation o* authority &

responsibility

!roper "ommuni"ation & budget edu"ationsystem

!arti"ipation o* all employees

Moti/ation & 9eibility


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Budgetarycontrol

Advantages

$ool or measuring

!erormance

Creates %udgetconsciousness

Provides s!ecifcaims

ntroduction oincentive scheme

'imitations

(ncertain uture)

revision re"uired

Discourages e*cient!ersons

Pro%lem o co+

ordinationCon,ict inde!artments

De!ends on $o!management

$o ma-e CO#$accounting more

relia%le


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Di.erence in Budget) Budgeting)& Budgetary Control/

Budgets are business estimates *or*uture period' budgeting is the pro"ess o*

preparing these estimates hilebudgetary "ontrol is a system o*a"hie/ing per*orman"e on the basis o*budgets.

Budget and budgeting are the parts o*planning hereas as budgetary "ontrol islinked ith "o,ordination & "ontrol.


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0ero+Base Budgeting

+ero base budgeting is the latest te"hniue o*budgeting & it has an in"reased use o*management tools.

In 6ero base budgeting e/ery year is taken as ane year and pre/ious year is not taken as a base.

It enables management to allo"ate *unds.

It impro/es e7"ien"y o* management and makeoptimum use o* resour"es.

1elp*ul in identi*ying e"onomi"al & aste*ul areas.

elated to organi6ational goals.


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Process o 0ero BaseBudgeting


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0ero Base Budgeting


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$raditional v1s 0ero BaseBudgeting

Traditional Budgeting Zero Base Budgeting

. .


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$han-you

budgetingbudgetarycontrol-140910122354-phpapp02.pptx

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