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.
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