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INDEX
CHAPTER 1: INTRODUCTION
1.
2.
3.
4.
5.
6.
Meaning of Budget.
Essential of Budget.
Types of Budget.
Benefits of Budget.
Budgetary control.
Importance of Budgeting.
Meaning of Budget
Simply put, a Budget is an itemized summary of likely income and expenses for a
given perioid. Its an invaluable tool to help you prioritize your spending and
manage your money-no matter how much or how little you have. Planning and
monitoring your budget will help you identify wasteful expenditures, adapt quickly
as your financial situation changes, and achieve your financial goals. A budget is a
set of interlinked plans that quantitatively describe an entitys projected future
operation. A budget is used as a yardstick against which to measure actual
operating results, for the allocation of funding, and as a plan for future operation.
Budget aid to help the planning of actual operation by forcing managers to
consider how the conditions might change and what steps should be taken now and
by encouraging managers to consider problems before they arise. It also help coordain taste the activities of organization by compelling the managers to examine
relationship between their own operation and those of other department. Budgets
help on every aspects of the production market chain, by enabling business,
government and consumers to have better spending power and accountability for
their earnings.
THE CHARTERED INSTITUTE OF MANAGEMENT ACCOUNTANTS,
ENGLAND, DEFINES A BUDGET AS:
ESSENTIALS OF BUDGET
Plan expressed in monetary terms
Prepared prior to a defined periodiate.
Related to a definite future period.
To control resources.
To communicate plans to various responsibility centers managers.
To evaluate the performance of managers.
To provide visibility into the companys performances.
For accountability.