Commonly used functional budgets Functional budgets relate to different functions. Some of the commonly used functional budgets are given below: 1. Sales Budget: Sales budget gives the estimate
Understanding Zero based budgeting Zero based budgeting is used as a managerial tool to control the costs. It got popularity since the early 1970’s. The ZBB was developed
Need for performance budgeting In the conventional budgetary control system, everybody give importance to rupee value. Nobody care about the physical units or related to cost. Gone are
What are the needs of budget revision? It is a well-known fact that budget is prepared for future. Future is uncertainty. Hence, there is a need of revision
Need and Importance of Budget report The mere preparation any budget does not bring any benefits to the organization. The reason is that the preparation of budget is
What is a Master Budget? Master budget acts as summary budget incorporating its component functional budgets and which is finally approved adopted and employed. Definition of Master Budget
What is flexible budget? A budget, prepared for different levels of activities is called flexible budgeting. The flexible budget is otherwise called as variable budget, dynamic budget, sliding
Definition of fixed Budget The Institute of Costs and Management Accounts (U.K) defines a fixed budget as “Fixed budget are those that are drafted to remain the same
Budgetary control is used as a tool of management control and derives some benefits. Even though, there are some disadvantages or limitations also. They are listed below. Disadvantages