Question:
Give me detail of Budgetary Control Techniques?
Answer:
The Budgetary control is the way of controlling organisation in which different budgets are made.
Budgetary control involves analyzing the results of the budget are as follow:
Variance Analysis
Responsibility Accounting
Adjustment of Funds
Zero Base Budgeting (ZBB)
Characteristics of a budget:
Participation: involve as many people as possible in drawing up a budget.
Comprehensiveness: embrace the whole organisation.
Standards: base it on established standards of performance.
Flexibility: allow for changing circumstances.
Feedback: constantly monitor performance.
Analysis of costs and revenues: this can be done on the basis of product lines, departments or cost centres.