Page 134 - DCOM302_MANAGEMENT_ACCOUNTING

Unit 7: Budgeting
Gopika Juneja, Lovely Professional University

Unit 7: Budgeting Notes

CONTENTS

Objectives
Introduction
7.1 Meaning and Features of Budgeting
7.2 Types and Preparation of Budgets
7.2.1 Production Budget

7.2.2 Materials/Purchase Budget
7.2.3 Sales Budget
7.2.4 Sales Overhead Budget
7.2.5 Cash Budget

7.3 Classification of the Budget in Accordance with the Flexibility

7.3.1 Fixed Budget
7.3.2 Flexible Budget
7.4 Budgetary Control System
7.5 Features of Budgetary Control System

7.6 Objectives of Budgetary Control
7.7 Zero-base Budgeting (ZBB)
7.7.1 Steps involved Zero-base Budgeting
7.7.2 Benefits of Zero-base Budgeting

7.7.3 Criticism of Zero-based Budgeting
7.8 Summary
7.9 Keywords
7.10 Review Questions
7.11 Further Readings

Objectives

After studying this unit, you will be able to:

Explain the meaning and features of budgeting
Describe the types of budgets

Prepare budgets and budgetary control
Describe the features and objectives of budgetary control
Illustrate Zero-base budgeting

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