Budgetary Control Techniques

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.

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