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The budgetary process has four phases namely:
- Budget preparation: the plan is used to determine expenditure and sectoral ceilings; to formulate the function/project activities; and to determine cost estimates;
- Budget and review: the plan is used to verify the consistency of the budget with approved activities, goals and objectives;
- Budget execution: the plan is the basis for determining the activities to be undertaken during the period; and
- Budget accountability: the plan sets the standards against which performance can be measured
SOURCE: Department of Budget and Management (DBM)
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What makes budgetary accounting different from conventional accounting?
what makes budgetary accounting different from conventional accounting
What is a budget report used for?
1.Budget helps to know the future results, 2.budgetary control technique helps to compare the estimated results with actual results. 3.budgeting focuses on standards or objectives. 4.budget helps subordinates to to compare their performance with budgetary standards and can do self appraisal. 5.through budgeting managers can allocate resources to departments according to their budgetary allocation. 6.budget help to improve coordination between various departments. 7.budgetary control helps to use the principle of management by exception by giving more attention to departments where actual operations and target deviate from budgetary standards.
6 Differentiate between Standard Costing and Budgetary Control?
Distinction Between Standard Costing And Budgetary ControlAlthough budgetary control and standard costing both are based on some common principles; both are pre-determined, comparison will be made with the actual costs and both system need a revision of the standards or the budget, these two systems have certain differences which are as follows: 1. Budgetary control deals with the operation of a department or the business as a whole in terms of revenue and expenditure. Standard costing is a system of costing which makes a comparison between standard costs of each product or service with its actual cost.2. Budgetary control covers as a whole in terms of revenue and expenditures such as purchases, sales, production, finance etc. Standard costing is related to a product and its cost only.3. Budgetary control is applicable to utmost all business organizations. Standard costing is applicable to manufacturing concerns producing standard products and services.4. Budgetary control is concerned with a specific period and is based on the totals of amounts. Standard costing is concerned with the standard costs, which are worked out generally per unit of production.5. Budgetary control is not based on standard costing system. Standard costing cannot exist in the absence of a budgetary control system.Posted Syeda Humaira Fatima
What is non budgetary control?
Non-Budgetary control is laying control on your non-budgeted expenses i.e those expenses which are not defined in normal budgeted expenses. The techniques for these non-budgetary control are : 1) Statistical data analysis. 2) Break-even analysis or the no profit & no-loss analysis. 3)Gantt Charts 4) PERT (Programmed Evaluation & Review Technique).
Budgetary control system?
Budgetary Control concerns itself with the total costs for each department. Each variance is the responsibility of the official who is in charge of the department in which it arises. This official must then explain the cause of the variance and take to prevent its recurrence.
What has the author Anthony W Tsekpo written?
Anthony W. Tsekpo has written: 'Budgetary processes and fiscal consolidation in Ghana' -- subject(s): Budget, Fiscal policy
What is correct spelling budgetory or budgetary?
The correct spelling is "budgetary."
Advantages and limitations of budgetary control?
One advantage of budgetary control is the fact that managers can control spending. A disadvantage to budgetary controls is that it may limit innovation.
What makes budgetary accounting different from conventional accounting?
what makes budgetary accounting different from conventional accounting
What is budgetary offer?
A budgetary offer is an estimation of expenses to expected to be used in a given period. It has to be itemized and it done as a proposal when seeking for financing.
How bonus program can encourage budgetary slack?
it does not
Which agency provides congress with information for making budgetary decisions?
The Congressional Budget Office (CBO) provides Congress with information and analysis for making budgetary decisions.
How long is the state budgetary period?
2 years
The budgetary unit of an organization which is led by a manager who has both the authority over and responsibility for the units performance is known as?
This budgetary unit is known as the control center.
What member of the loman family is most aware of the family's financial situation and budgetary concerns?
Linda Loman is most aware of the family's financial situation and budgetary concerns.
Define budgetary control and discuss the objectives of introducing a budgetary control system in your own organization What are the advantages and limitations of budgeting?
Methodical control of an organization's operations through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them is called Budgetary control.
What are the consequencies of budgetary slack?
The consequences of budgetary slack is that members of the team will spend more money in order to take up the slack. Management should set the budget with no slack.
