Archive about 'Budget'

Give a brief contrast between Budgetary Control and Standard Costing

Tweet There seems to be a big difference when we understand that standard costing system is concerned with the manufacturing of a product or providing of a service whilst budgetary control system is concerned with the overall policy of the company.But are there any similarities between these two systems.? Yes, the following are the similarities […]

List Of Topics Under The Heading:Budget And Budgetary Control

Tweet This Content Page helps you to navigate to all articles relating to the Budgets and Budgetary Control.From each topic, you can return to this Content Page. Click to the respective topic: Content Page On BUDGET & BUDGETARY CONTROL 1.0 Objectives of Budgeting 2.0 Steps Involve In Budgeting 3.0 What Is a Budget Manual 4.0 […]

Simple Illustration Of How To Compute Using Flexible Budgeting

Tweet Earlier article describe what is flexible budget. Below is a simple illustration of flexible budgeting. Company ABC manufactures a single product and has produced the following flexed budget for the year.Level Of Activity 70% 80% 90% $ $ $ Direct materials 17,780 20,320 22,860 Direct labor 44,800 51,200 57,600 Production overhead 30,500 32,000 33,500 […]

What Are The Steps Involved In The Preparation Of The Master Budget

Tweet Earlier article describe what is capital, operating, summary and master budget. In brief, the master budget is the summary budget which consolidates the information from all subsidiary budgets. It usually comprises the budgeted Income statement, budgeted balance sheet and cash budget. The master budget is a very significant planning tool which is reviewed by […]

The Importance or Benefits From Having Established A Capital Expenditure Budget

Tweet I work in a medium size company. It is budget time. Is it necessary for me to prepare a Capital Expenditure Budget. Can you tell me the importance the benefits derived from preparing such budget? Answer: As we understand that the role of a capital expenditure budget is to take account of all expenditures […]

How to prepare a Production Budget.

Tweet How to prepare a Production Budget For the production manager to know how much to produce during the budgeted period, obviously he/she needs to know the sales budgeted. Only then can he consider the production capacity and also to take account the planned closing stocks of finished goods. Once the volume of production is […]

Learn about the Sales Budget

Tweet The Sales Budget is the first budget prepared. It is derived from the sales forecast (estimate of sales revene for the budget period).Salient points about the Sales Budget: The formula is simple namely Sales Forecast=Quantities forecast X Selling prices It has a detailed breakdown by product,area,timing, volume and value. The detailed breakdown is to […]

Explain what is Capital Budget,Operating Budget,Summary Budget & Master Budget

Tweet Budgets can be broadly classified into two categories: Capital Budgets Operating Budgets WHAT IS Capital Budget: is concerned with the provision of resources for the long-term running of a business for example, the Capital Expenditure Budget WHAT IS Operating Budget: Is concerned with the DAY-TO-DAY operating activities of the business. Usually prepared for a […]

What Is A Budget Manual?

Tweet The administration of budgeting is documented in a budget manual. It contains the purpose of, procedure for and responsibility of the people involved in budgeting. More details as follows: The objectives of the business and the part which budgetary control plays in achieving these objectives; The procedures to be adopted in operating the budgetary […]

What Are The Steps Involve In Budgeting?

Tweet The steps are: (1) Select a budget period: the length of the budget period depends on the kind of plan being made. Some budget periods will follow the natural cycle time, for example, one year for a sales budget. Other budget periods may be determined by management, for example five years for capital expenditure […]