Page 112 - DCOM206_COST_ACCOUNTING_II

Unit 6: Budgetary Control
Pooja, Lovely Professional University

Unit 6: Budgetary Control Notes

CONTENTS
Objectives
Introduction
6.1 Concept of Budget

6.1.1 Features of a Budget
6.1.2 Objectives of Budget
6.2 Budgeting
6.2.1 Objectives of Budgeting

6.2.2 Advantages and Disadvantages of Budgeting
6.3 Meaning of Budgetary Control
6.3.1 Objectives of Budgetary Control
6.3.2 Essentials of a Successful Budgetary Control
6.4 Classification of Budgets
6.5 Preparation of Cash Budgets

6.5.1 Role of Cash Budget
6.6 Preparation of Flexible Budget
6.6.1 Advantages of Flexible Budget
6.7 Performance Budget
6.7.1 Meaning of Performance Budgeting

6.7.2 Objectives of Performance Budgeting
6.7.3 Steps in Performance Budgeting
6.8 Summary
6.9 Keywords
6.10 Review Questions
6.11 Further Readings

Objectives

After studying this unit, you will be able to:
 Explain the meaning of budget;
 Discuss the concept and objectives of budgetary control;
 Explain essentials of budgetary control;

 State the classification of budget;
 Discuss the preparation of cash and flexible budget;
 Explain performance budgeting.

LOVELY PROFESSIONAL UNIVERSITY 107