What is budget and budgetary control?

Budgetary control is the process of determining various actual results with budgeted figures for the enterprise for the future period and standards set then comparing the budgeted figures with the actual performance for calculating variances, if any. A budget is a means and budgetary control is the end-result.

What is meant by budgeting?

Budgeting is a process of looking at a business’ estimated incomes (the money that comes into the business from selling products and services) and expenditures (the money that goes out form paying expenses and bills) over a specific period in the future.

What is budgetary control example?

An example would be an advertising budget or sales force budget. b) Budgetary control: A control technique whereby actual results are compared with budgets. Any differences (variances) are made the responsibility of key individuals who can either exercise control action or revise the original budgets.

What type of control is budget?

Budgetary control is a system of controlling cost which includes preparation of Budgets coordinating the departments and establishing responsibilities comparing performance with budgeted and acting upon results to achieve the maximum profitable.

What is budget example?

A budget is defined as a plan or estimate of the amount of money needed for cost of living or to be used for a specific purpose. An example of budget is how much a family spends on all expenses in a month. An example of budget is how much a person plans on spending on a new bed.

What is budget period?

The intervals of time into which a period of assistance (project period) is divided for budgetary and funding purposes. Budget periods are usually 12 months long but may be shorter or longer, if appropriate.

Why is budgetary control important?

The importance of budgetary control is reflected from the fact that it helps the management to efficiently track the company’s performance. Such monitoring ensures that the deviation of the company’s actual performance from the budgeted one is always under the scanner and can be rectified before it is too late.

What is the importance of budget control?

What type of control is a budget?

What are the 7 types of budgeting?

Types of Budgets: 7 Types: Performance Budget, Fixed Budget, Flexible Budgets, Incremental Budget, Rolling Budget and Cash Budget.

What is called budget?

A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a group of people, a business, a government, or just about anything else that makes and spends money.