Description
This is a PPT describes Budgetary Control. It describes what the budget is and what it means by budget control.
CONTROL MECHANISMS – BUDGETARY CONTROLS
What is Budget ? - A formal statement of the financial resources set aside for carrying out specific activities in a given period of time. - It helps to co-ordinate the activities of the organization.
What is Budget Control ? - Preparation
- Comparison
- Revision
Objectives of Budgetary Control
- Planning - Communication - Coordination - Motivation - Control - Approved Plan
Sample Budget
Budgetary Control Techniques
- Removal of various perks
- Releasing resources from the project - Less incentives - Layoffs
Advantages of Budgetary Control
- Compels management to think about the future. - Promotes coordination and communication. - Defining Areas of responsibility. - Allocation of Scarce Resources. - Provides a basis for performance appraisal.
Drawbacks of Budgetary Control
- Budgeting based on inaccurate forecasts.
- Constantly changing circumstances. - May lead to restricted use of resources.
- Revision of budget – An expensive exercise.
doc_513249387.ppt
This is a PPT describes Budgetary Control. It describes what the budget is and what it means by budget control.
CONTROL MECHANISMS – BUDGETARY CONTROLS
What is Budget ? - A formal statement of the financial resources set aside for carrying out specific activities in a given period of time. - It helps to co-ordinate the activities of the organization.
What is Budget Control ? - Preparation
- Comparison
- Revision
Objectives of Budgetary Control
- Planning - Communication - Coordination - Motivation - Control - Approved Plan
Sample Budget
Budgetary Control Techniques
- Removal of various perks
- Releasing resources from the project - Less incentives - Layoffs
Advantages of Budgetary Control
- Compels management to think about the future. - Promotes coordination and communication. - Defining Areas of responsibility. - Allocation of Scarce Resources. - Provides a basis for performance appraisal.
Drawbacks of Budgetary Control
- Budgeting based on inaccurate forecasts.
- Constantly changing circumstances. - May lead to restricted use of resources.
- Revision of budget – An expensive exercise.
doc_513249387.ppt