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Budgetary Planning and Control - Accounting Techniques
A budget is a plan of action expressed in monetary terms. Therefore it is a quantified plan of what one intends to do.
All business must prepare a budget that is a document which has:
1. Quantify the strategy that management has decided to implement in order to achieve the business objectives for a future period. The budget will signify planned expenditure and income and may be analyzed to involve details for each product department and type;
2. Offer a base for control cycle; the control cycle is as given:
3. Provide a mechanism via such management responsibility may be matched along with the budgetary information and assisted with the budgetary control cycle.
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