Budgetary Control

Essentials of Effective Budgeting

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Budgetary Control

Preliminaries in the Installation of Budget System

Essentials of Effective Budgeting
A budgetary control system can prove successful only when certain conditions & attitudes exist, absent of which will negate to a large extent the value of a budget system is any business.
1.Support of top management. Participation by responsible executives
3.Reasonable goals
4.Clearly defined organization
5.Continuous budget education
6.Adequate accounting system
7.Constant vigilance
8.Maximum profits
9.Cost of the system
10.Integration with standard costing system
11.It is prepared in advance & is based on a future plan of action.
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Preliminaries in the Installation of Budget
System
Pre-requisites for the successful implementation of a budgetary control system are;
1.Creation of budget centers
2.Introduction of adequate accounting records
3.Preparation of an organization chart
4.Establishment of budget committee
5.Preparation of budget manual
6.Budget period
7.Determination of the key factor.
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