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State Budgetary Control
A budget is a quantitative expression of a plan of action relating to the forthcoming budget period. It represents a written operational plan of management for the budget period. It is always expressed in terms of money and quantity. It is the policy to be followed during the budget period for attainment of specified organizational objectives.
The essential features of a budget are:
(a) financial and quantitative statement of the action plan,
(b) laid down prior to the budget period during which it is followed,
(c) based on management's policy and (d) prepared for specified objective.
According to CIMA terminology, a budget a plan expressed in money. It is prepared and approved period to the budget period and may show income expenditure and the capital to be employed. May be drawn up showing incremental effects on former budgeted or actual figures or be compiled by zero based budgeting.
Standard costing system However, it has been argued that traditional variance analysis is unhelpful and potentially misleading in the modern organization, and can make managers
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