Wednesday, July 19, 2017

A project on budgetary control project for MBA finance at lanco India

No system of planning can be successful without having an effective and efficient system of control. Budgeting is closely connected with control. The exercise of control in the organization with the help of budgets is known as budgetary control.

The process of budgetary control includes:

  • Preparation of various budgets.
  • Continuous comparison of actual performance with budgetary performance
  • Revision of budgets in the light of changed circumstances. 


A system of budgetary control should not become rigid. There should be enough scope of flexibility to provide for individual initiative and drive. Budgetary control is an important device for making the organization. More efficient on all fronts. It is an important tool for controlling costs and achieving the overall objectives.
BUDGETARY CONTROL 

  • Organization for budgeting
  • Budget manual + Theory 

"A document which sets out, inter alias, the responsibilities of the persons engaged in, the routine of and forms and records required for budgetary control."
The budget manual is a written document or booklet that specifies the objectives of budgeting organization and procedures. Following are some of the important matters covered in a budget manual. There are many advantages attached to the use of budget manual. It is a formal record defining the functions and responsibilities of each executive.
The methods and procedures of budgetary control are standardized.
There is synchronization of the efforts of all which result in maximization of the profits of the organization.

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