Responsibility Accounting
Budget and Responsibility Accounting
Budget
Meaning
Budget is a financial and/or quantitative statement, prepared and approved prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective. * CIMA Official Terminology
It is a plan quantified in monetary terms, prepared and approved prior to a defined period of time, usually showing planned income to be generated and/or expenditure to be incurred during that period and the capital to be employed to attain a given objective. It is a plan of future activities for an organization.
Budgeting
Budgeting is the whole process of designing, implementing and operating budgets. The emphasis is short-term budgeting process involving the provision of resources to support plans which are being implemented.
Budgetary control
Budgetary control is the estabhlishment of budgets relating the responsibilities of executives the the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by individual action the objective of that policy or to provide a basis for its revision. * CIMA Official Terminology
Concept of Responsibility Accounting
The concept of responsibility accounting has emerged to accommodate the need for management information at a more specific level of detail than can be provided by financial accounting procedures.
Responsibility Accounting is a method of accounting in which costs are identified with persons assigned to their control rather than with the products or function.
Responsibility accounting is concerned with collecting and reporting planned and actual accounting information about the inputs and outputs of responsibility centres.
Responsibility Accounting is the collection, summarization, and reporting of financial information about various decision centres (responsibility centres) throughout an organization; also called activity accounting or profitability
Budget
Meaning
Budget is a financial and/or quantitative statement, prepared and approved prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective. * CIMA Official Terminology
It is a plan quantified in monetary terms, prepared and approved prior to a defined period of time, usually showing planned income to be generated and/or expenditure to be incurred during that period and the capital to be employed to attain a given objective. It is a plan of future activities for an organization.
Budgeting
Budgeting is the whole process of designing, implementing and operating budgets. The emphasis is short-term budgeting process involving the provision of resources to support plans which are being implemented.
Budgetary control
Budgetary control is the estabhlishment of budgets relating the responsibilities of executives the the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by individual action the objective of that policy or to provide a basis for its revision. * CIMA Official Terminology
Concept of Responsibility Accounting
The concept of responsibility accounting has emerged to accommodate the need for management information at a more specific level of detail than can be provided by financial accounting procedures.
Responsibility Accounting is a method of accounting in which costs are identified with persons assigned to their control rather than with the products or function.
Responsibility accounting is concerned with collecting and reporting planned and actual accounting information about the inputs and outputs of responsibility centres.
Responsibility Accounting is the collection, summarization, and reporting of financial information about various decision centres (responsibility centres) throughout an organization; also called activity accounting or profitability
References: * Cost Accounting and Financial management by Ravi M. Kishore * www.wikipedia.com * www.Investopedia.com