Budget, Budgeting & budgetary control

Presentation on Budget, budgeting and budgetary control..
Contents-
1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
7) Zero-based budgeting
8) Difference in Traditional & Zero based budgeting.

1. Budgeting & Budgetary Control Submitted by: (MBA I st SEM.) Chetna prasad Shikha pathak Chitra totwani Shilpi Panchal

2. Contents Budgeting [characteristics] Budgetary control Difference in budget, budgeting, budgetary control Essentials in budgetary control Requisites for budgetary control system Merits & limitations Zero-based budgeting Difference in Traditional & Zero based budgeting.

3. Definition & Meaning of Budgeting “A budget is a pre-determined statement of management policy during a given period which provides a standard for comparison with the results actually.” -Brown & Howard “Budgeting is a preparation of comprehensive operating and financial plans for specific intervals of time” - Shilinglaw

4. Characteristics of good Budgeting

5. Definition & meaning of Budgetary Control “Budgetary control is a system which uses budgets as a means of planning and controlling all aspects of producing/selling commodities or services” -J Batty “A budget is a means and budgetary control is the end result”

6. Essentials of Budgetary Control Organization for budgetary control. Budget centers Budget officers/committee Budget manual Budget period

7. Organization chart for Budgetary Control

8. Requisites for Budgetary Control System Clarifying objectives Proper delegation of authority & responsibility Proper communication & budget education system Participation of all employees Motivation & flexibility

9. Budgetary control Advantages Tool for measuring performance Creates budget consciousness Provides specific aims Introduction of incentive scheme Limitations Uncertain future, revision required Discourages efficient persons Problem of co-ordination Conflict in departments Depends on Top management To make COST accounting more reliable

10. Difference in Budget, Budgeting, & Budgetary Control. Budgets are business estimates for future period, budgeting is the process of preparing these estimates while budgetary control is a system of achieving performance on the basis of budgets. Budget and budgeting are the parts of planning whereas as budgetary control is linked with co-ordination & control.

11. Zero-Base Budgeting Zero base budgeting is the latest technique of budgeting & it has an increased use of management tools. In zero base budgeting every year is taken as a new year and previous year is not taken as a base. It enables management to allocate funds. It improves efficiency of management and make optimum use of resources. Helpful in identifying economical & wasteful areas. Related to organizational goals.

12. Process of Zero Base Budgeting

13. Zero Base Budgeting

14. Traditional v/s Zero Base Budgeting Traditional Budgeting Zero Base Budgeting

15. Thank you