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Q. Show the Budgetary planning ?
A budget is a forecast and quantified plan of action. Budgetary planning creates a budget like a part of the planning process for the organisation. Budgetary control compares the budgeted results as a yardstick or target to actual results, to obtain any variances or deviations from the plan, this process of comparison can be used to take control action and bring actual results in line with the plan.
Budgets may assist in authorising expenditure, communicating plans andobjectives, controlling operations, coordinating activities and evaluating performance, planning and rewarding performance. Often reward systems involve comparison of actual with budgeted performance.
Akash Engineering Ltd. (AEL) had achieved sales of Rs. 3440 lakhs during the year 2004-05 against sales of Rs. 1209 lakhs previous year. The sales this year were highest ever achie
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