Budget
According to
the Institute of Cost and Works Accountant, England defined a budget is” A
financial or quantitative statement prior to a defined period of time ,of a
policy to be perused for that period to attain a given objective .”
The important
features of budget are as follows;
1) A budget is a document in writing
2) It pertains to a policy which is to
be executed during budget period.
3) It relate to a defined period in
future
4) A budget is expressed in terms of
physical quantities, money values or both
5) Budget provide a basis or standard
for comparison with actual performance for control purposes
B Budgeting
Budgeting refers to the process of preparing the budget. It involves a detailed study of business environment clearly grasping the management objectives, the available resources of the enterprise and capacity of the enterprise.
According to
Rowland and Harr:”Budgeting may be said to be the act of building budgets”
Budgetary Control
The
budgetary control is concerned with the
management of business activities with the help of budgets. In this way ,budgets
serve as a control device. Budgetary control is the process of preparation of
budgets for various activities and comparing the budgeted figures for arriving
at deviations if any, which are to be eliminated in future.
Superb
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