Budget

meaning and definitions

y A budget is written plan covering projected activities of a firm for a defined time period. - Dickey y Budget is an estimate of future needs arranged according to an orderly basis covering all activities of an enterprise for a definite period of time. - George Terry y A budget is a financial or quantitative statement prepared prior to a definite period of time, of the policy to be pursued during that period for the purpose of attaining a given objective. - ICMA London

Budgetary Control

meaning and definitions

y Budgetary control may be described as a process of

finding out what s being done and comparing actual results with the corresponding budget data in order to approve accomplishments or to remedy differences by either adjusting the budget estimates or correcting the cause of the differences. - George R. Terry y Budgetary control is a system which uses budgets as a means of planning and controlling all aspects of production and selling commodities or services. - J. Batty

Importance of Budgetary Control

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Improvement in planning Aid in co-ordination Comprehensive control Instrument of motivation A media of communication Assistance to cost accounting Delegation of authority Stability in the business Decentralization Effective communication Optimum use of resources Management by exception Easy availability of funds