Budgetry Control Study.. Synopsis
SYNOPSIS
ON
BUDGETARY CONTROL
AT
RATIONALE OF THE STUDY
According to the J. Betty “system which uses Budgets as means of planning and controlling all aspects of producing and/selling commodities and services” “ Budgetary control is the system of controlling costs which includes the preparation of Budgets , co-coordinating the department and establishing the responsibilities, comparing the actual performance with the Budgeted and acting up in the results to achieve the maximum profitability.” It brings in efficiency and economy by promoting cost consciousness among the employees.
Provides a basis for performance appraisal (variance analysis). A budget is basically a yardstick against which actual performance is was unread assessed. Control is provided by comparisons of actual results against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and non-controllable factors.
INTRODUCTION
According to ICMA, England, a Budgets is “financial and/or quantitative statement, prepared and approved prior to be defined period of time, of the policy to be pursed during the period for the purpose of attaining a given objective.”
It is also defined as “a blue print of protected plan of a action of a business for a definite period of time.”
According to the brown and Howard “ Budgetary control is the system of controlling costs which includes the preparation of Budgets , co-coordinating the department and establishing the responsibilities, comparing the actual performance with the Budgeted and acting up in the results to achieve the maximum profitability.”
According to the j. Betty ”system which uses Budgets as means of planning and controlling all aspects of producing and/selling commodities and services”
IMPORTANCE OF THE STUDY
Budget is essential in every walk of our life –national, domestic and business. A budget is
ON
BUDGETARY CONTROL
AT
RATIONALE OF THE STUDY
According to the J. Betty “system which uses Budgets as means of planning and controlling all aspects of producing and/selling commodities and services” “ Budgetary control is the system of controlling costs which includes the preparation of Budgets , co-coordinating the department and establishing the responsibilities, comparing the actual performance with the Budgeted and acting up in the results to achieve the maximum profitability.” It brings in efficiency and economy by promoting cost consciousness among the employees.
Provides a basis for performance appraisal (variance analysis). A budget is basically a yardstick against which actual performance is was unread assessed. Control is provided by comparisons of actual results against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and non-controllable factors.
INTRODUCTION
According to ICMA, England, a Budgets is “financial and/or quantitative statement, prepared and approved prior to be defined period of time, of the policy to be pursed during the period for the purpose of attaining a given objective.”
It is also defined as “a blue print of protected plan of a action of a business for a definite period of time.”
According to the brown and Howard “ Budgetary control is the system of controlling costs which includes the preparation of Budgets , co-coordinating the department and establishing the responsibilities, comparing the actual performance with the Budgeted and acting up in the results to achieve the maximum profitability.”
According to the j. Betty ”system which uses Budgets as means of planning and controlling all aspects of producing and/selling commodities and services”
IMPORTANCE OF THE STUDY
Budget is essential in every walk of our life –national, domestic and business. A budget is