Aster Minds - Quality Education Beyond Your Imagination
MASTER MINDS - QUALITY EDUCATION BEYOND YOUR IMAGINATION
8. BUDGETARY CONTROL
1. DEFINE THE TERM BUDGET.
Definition: 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. It may include income, expenditure and employment of capital.
Features:
1. 2. 3. 4. Financial and/or Quantitative Statement. Futuristic prepared and approved prior to a defined period of time. Goal Oriented for the purpose of attaining a given objective. Components Income, Expenditure and Employment of Capital.
2. WHAT ARE THE OBJECTIVES OF BUDGETING/PERFORMANCE BUDGETING? The objectives of Budgeting are 1. To encourage selfstudy in all aspects of a Company's operations. 2. To get all members of management to “put their heads” to the basic question of how the business should be run, to make them of a coordinated team operating in unison towards clearly defined objectives. 3. To promote the planning process and provide a sense of direction to every member of the organization. 4. To force a definition and crystallization of Company policies and aims. 5. To increase the effectiveness with which people and capital are employed. 6. To disclose areas of potential improvement in the Company’s operations. 7. To stimulate study of relationship of the Company to its external economic environment for improving the effectiveness of its direction. 8. To direct and coordinate business activities and units to achieve stated targets of performance. 9. To facilitate the control process, by comparing actual results with plan, and provide feedback to the employees about their performance. 3. DEFINE THE TERM BUDGETARY CONTROL. WHAT ARE ITS SALIENT FEATURES? 1. Definition: Budgetary Control is defined as "the establishment of budgets, relating the responsibilities of executives to the requirements of a policy, and the continuous
8. BUDGETARY CONTROL
1. DEFINE THE TERM BUDGET.
Definition: 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. It may include income, expenditure and employment of capital.
Features:
1. 2. 3. 4. Financial and/or Quantitative Statement. Futuristic prepared and approved prior to a defined period of time. Goal Oriented for the purpose of attaining a given objective. Components Income, Expenditure and Employment of Capital.
2. WHAT ARE THE OBJECTIVES OF BUDGETING/PERFORMANCE BUDGETING? The objectives of Budgeting are 1. To encourage selfstudy in all aspects of a Company's operations. 2. To get all members of management to “put their heads” to the basic question of how the business should be run, to make them of a coordinated team operating in unison towards clearly defined objectives. 3. To promote the planning process and provide a sense of direction to every member of the organization. 4. To force a definition and crystallization of Company policies and aims. 5. To increase the effectiveness with which people and capital are employed. 6. To disclose areas of potential improvement in the Company’s operations. 7. To stimulate study of relationship of the Company to its external economic environment for improving the effectiveness of its direction. 8. To direct and coordinate business activities and units to achieve stated targets of performance. 9. To facilitate the control process, by comparing actual results with plan, and provide feedback to the employees about their performance. 3. DEFINE THE TERM BUDGETARY CONTROL. WHAT ARE ITS SALIENT FEATURES? 1. Definition: Budgetary Control is defined as "the establishment of budgets, relating the responsibilities of executives to the requirements of a policy, and the continuous