Archive | Budgetary Control

Budgetary Control: Principles, Merits and Objectives

In this article we will discuss about Budgetary Control:- 1. Definition of Budgetary Control 2. Principles of Budgetary Control 3. Characteristics 4. Merits 5. Demerits 6. Objectives. Contents: Definition of Budgetary Control Principles of Budgetary Control Characteristics of Budgetary Control Merits of Budgetary Control Demerits of Budgetary Control Objectives of Budgetary Control 1. Definition of […]

9 Essentials of an Effective Budgeting

The following points highlight the nine essentials of an effective budgeting. The nine essentials are: 1. Sound Forecasting 2. An Adequate, Planned and Reliable Accounting System 3. Efficient Organisation 4. Formation of Budget Committee 5. Cleanly defined Business Policies 6. Availability of Standard Information 7. Support of Top Management 8. Good Reporting System 9. Motivation. […]

Requisites for Operation of a Budgetary Control

The following points highlight the top ten requisites for operation of a budgetary control. The requisites are: 1. Well Planned Organization 2. Separate Departments to be Established 3. Accounting Records 4. General Instruction 5. Preparation of an Organisation Chart 6. Budget Committee 7. Budget Manual 8. Budget Periods should be Ascertained 9. The Key Factor […]

Top 3 Methods for Preparation of Cash Budget

The following points highlight the top three methods for preparation of cash budget. The methods are: 1. The Receipt and Payments Method 2. Adjusted Profit and Loss Method 3. Balance Sheet Method. Preparation of Cash Budget: Method # 1. The Receipt and Payments Method: Under this method all anticipated cash receipts are carefully forecasted from […]

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