Essentials of effective budgetary control (or) Preliminaries for the adoption of budgetary control system are listed below. Essential elements of effective budgetary control 1. Support of Top Management
The very objective of budgetary control is the allocation of responsibility with budgeted figures and develops a basis for the measurement of performance to find the efficiency of
Understanding Sales budget In every organization, sales budget is the principal budget. Hence, all other budgets are prepared on the basis of sales budget. The sales budget is
What are the elements of successful budgeting? The following elements are necessary for successful budgeting. 1. Accurate Forecasting The business activities may be forecasted accurately to some extent.
Understanding Budget Period Before preparing a budget, the organization should decide the budget period. The budgeting must be related to a specific period of time. There is no
Understanding Cash Budget The other name of cash budget is finance budget. This budget is the most important of all the functional budgets. But, this budget is prepared
Benefits or Advantages of Budgeting Budgeting plays an important role in the effective utilization of available resources in order to achieve over all objectives of an organization. It
How do a company determine advertising budget? One of the important ingredients of advertising policy is the determination of the advertising budget. The company’s ability to finance an
What is Budgetary control? Budgetary control is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out
Importance and classification of budgets Budgets are not only a model for financial projections of income, balance sheet and resource flows with indicators; but also as a set