MANAGEMENT ACCOUNTING Budget and Budgetary Control.

MANAGEMENT
ACCOUNTING
Budget and Budgetary
Control

INTRODUCTION
 Budget is the process of estimating the
future incomes and expenses based on
some historical data and analyzing the
actual performance to identify any
deviation and to take certain corrective
actions. It is a part of the business
planning and strategy building process. It
helps in estimating the future incomes
and expenses, and to apply a control over
the actual performance of the business.

TECHNICAL ASPECT OF THE
BUDGET
 The technical aspect of the budget means
application of various tools and techniques
for estimation and forecasting of the
future incomes and expenses. It also sets a
benchmark for the performance or a target
for the company to be achieved in near
future by their business activities.
 After the actual work has been performed,
it analyses the actual performance in
comparison with the benchmark as set in
the budget.