7

Budget and Budgetary Control

LEARNING OBJECTIVES

On completion of the study of the chapter, you should be able to understand:

  • What is Budget and Budgeting?

  • What is Budgetary Control?

  • Objectives, advantages and limitations of Budgetary Control.

  • Comparison between Budget and Budgetary Control.

  • Comparison between Standard Costing and Budgetary Control.

  • Concept of Zero-based Budgeting.

  • Classification of Budget.

7.1 MEANING OF BUDGET

According to CIMA, London, Budget is defined as ‘a financial and/or quantitative statement prepared and approved prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objective. It may include income, expenditure and the employment of capital

Get Management Accounting now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial