Page 185 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers Pooja, Lovely Professional University

Notes Unit 9: Budgetary Control

CONTENTS
Objectives

Introduction
9.1 Meaning of Budgetary Control
9.2 Limitations of Budgetary Control

9.3 Installation of Budgetary Control
9.4 Classification of Budgets
9.4.1 Classification on the Basis of Functions

9.4.2 Materials/Purchase Budget
9.4.3 Classification of the Budget in accordance with the Flexibility
9.5 Innovative Budgeting Techniques

9.5.1 Programme Budgeting
9.5.2 Performance Budgeting
9.5.3 Responsibility Accounting

9.5.4 Zero Based Budgeting
9.6 Summary
9.7 Keywords

9.8 Self Assessment
9.9 Review Questions
9.10 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the meaning of budgets and budgetary control
State the limitations of budgetary control
Discuss installation and classification of budgets

Describe the innovative budgeting techniques like programme budgeting, performance
budgeting, responsibility accounting and zero based budgeting.

Introduction

Budget is an estimate prepared for definite future period either in terms of financial or
non-financial terms. Budget is prepared for any course of action or business or state or nation, as
a whole. The budget is usually expressed in terms of total volume.

180 LOVELY PROFESSIONAL UNIVERSITY