Budget and Budetary control

Budget and Budetary control

UNIT 4

Definition

A Budget is a written plan covering projected activities of a firm for a defined period ---by dickey

essentials of Budget

• It is a Statement

• It pertains to a future period

• It states action points that need to be followed to attain the objectives of the organisation

• It may be expressed in monetary units of physical units or both

• It forms the basis for the monitoring and control

Objectives

Classifications of Budgets

• Sales budget

• Production Budget

• Material Budget

• Cash Budget

• flexible Budget

• Manufacturing overhead budget

• Sales over head budget