Bugetary Control
Download as PPT, PDF2 likes858 views
The document discusses various aspects of business budgets and budgetary control. It defines what a budget is, notes that budgets can be short-term like monthly or long-term, and explains that budgets help with planning, coordination, and control. It also discusses different types of budgets, the relationship between budgets and forecasts, and the role of budgets in budgetary control systems.
Bugetary Control
- 1. FEW BUSINESS PLAN TO FAIL , BUT OF THOSE FLOP, FAILED TO PLAN BUDGETS Monika Kansal, University Business School, PURC, Ludhiana
- 2. A budget is The quantitative expression of a; proposed plan of action by the management. Next year I shall be increasing sales substantially Next year I shall be increasing sales by 34%. Monika Kansal, University Business School, PURC, Ludhiana
- 3. For a specified period of time In 2007 we shall be preparing the budgets for 2008. in 2008 we shall be preparing the budgets for 2009. And so on_______________ Monika Kansal, University Business School, PURC, Ludhiana
- 4. Short term budgets may be monthly or quarterly or biannually. Monika Kansal, University Business School, PURC, Ludhiana
- 5. Helps in coordinating what needs to be done Uncertain future Monika Kansal, University Business School, PURC, Ludhiana
- 6. Covers Both financial and non financial aspects Monika Kansal, University Business School, PURC, Ludhiana
- 7. Financial statements regarding the future Monika Kansal, University Business School, PURC, Ludhiana
- 8. Alternative terminology Performa statements Targeting Profit planning Monika Kansal, University Business School, PURC, Ludhiana
- 9. Types of budgets From flexibility point of view Static/ fixed Flexible Monika Kansal, University Business School, PURC, Ludhiana
- 10. Flexible Conjures more realistic picture of actual variances Monika Kansal, University Business School, PURC, Ludhiana
- 11. In flexible budget emphasis is on Segregation of all costs in fixed, variable and semi-variable categories Monika Kansal, University Business School, PURC, Ludhiana
- 12. A hurried tour through cost behavior Materials @ 3 per unit Labour @ 2 per unit Expenses - Fixed Rs. 100,00,000 Semi-variable Rs 4 per unit (calculated for 5000 units of which 60 % is fixed) Monika Kansal, University Business School, PURC, Ludhiana
- 13. MATERIALS ARE VARIABLE COSTS. Monika Kansal, University Business School, PURC, Ludhiana
- 14. SILK WORMS Monika Kansal, University Business School, PURC, Ludhiana
- 15. Indirect materials Indirect labour Indirect expenses FIXED VARIABLE OVERHEADS SEMI – VARIABLE Monika Kansal, University Business School, PURC, Ludhiana
- 16. Is a budget same as estimate Simply guessing the future event under anticipated conditions With use of heuristics or scientific methods Monika Kansal, University Business School, PURC, Ludhiana
- 17. Is budget a forecast Assessment of probable future events TATA SMALL CAR Monika Kansal, University Business School, PURC, Ludhiana
- 18. Budget is the implication of the forecast Budgets starts where forecasting ends Monika Kansal, University Business School, PURC, Ludhiana
- 19. Budget is a part of budgetary control PLANNING CONTROLLING COORDINATING Monika Kansal, University Business School, PURC, Ludhiana BUDGETARY CONTROL BUDGETS
- 20. Meaning of budgetary control Establishment of budgets Continuous comparisons Remedial action Revision of standards ,if necessary ACTUAL BUDGETED Monika Kansal, University Business School, PURC, Ludhiana
- 21. Budget Manual A document, schedule, booklet which inter alia, responsibilities of persons engaged in the routine of and of forms and records required for budgetary control. CIMA, London Monika Kansal, University Business School, PURC, Ludhiana
- 22. Budget period SHORT TERM LONG TERM ANNUAL Monika Kansal, University Business School, PURC, Ludhiana
- 23. Strategies and Budgets STRATEGIES SHORT TERM PLANNING LONG TERM PLANING SHORT TERM BUDGETS LONG TERM BUDGETS Monika Kansal, University Business School, PURC, Ludhiana
- 24. Master budget The summary budget incorporating its functional budgets and is finally approved, adopted, employed. Monika Kansal, University Business School, PURC, Ludhiana
- 25. A case study- a million more cars Demand forecast for 2010 – 2.2 to 2.3 million cars society of Indian Automobiles Manufacturers Source- BW,29 jan 2007 Monika Kansal, University Business School, PURC, Ludhiana
- 26. Retail sector opens up- Income of agricualture dependent people shall increase leading to increase in demand for automobiles The global automibile market moving towards small cars, fresh demands from even developed markets Monika Kansal, University Business School, PURC, Ludhiana
- 27. Long term strategies big –bang announcements Tata motors rs. 10,000 crores investments by 2009-2010 Tata and Fiat rs.4000 crores plant M& M and Renault half a million cars capacity plant Hyundai mulls doubling the capacity from 3,00,000 to 600,000 cars Monika Kansal, University Business School, PURC, Ludhiana