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Published by: PUTTU GURU PRASAD SENGUNTHA MUDALIAR on Sep 20, 2008
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02/01/2013

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Budget preparation
Budget preparation

Prof. GURU PRASAD
FACULTY MEMBER
INC GUNTUR
pgp4149@gmail.com

Budget preparation
Budget preparation
\u2022
Characteristics/features of budget
Characteristics/features of budget
\ue000
It estimates the profit potential of the
It estimates the profit potential of the
enterprise
enterprise
\ue000
It always express in monetary terms
It always express in monetary terms
\ue000
The period is usually one year
The period is usually one year
\ue000
The budget is a management commitment to
The budget is a management commitment to
accept the responsibility accomplishing the
accept the responsibility accomplishing the
stated objectives
stated objectives
\ue000
The budget normally approved by top
The budget normally approved by top
management
management
\ue000
The budget may be changed according to
The budget may be changed according to
circumstances
circumstances
\ue000
The budget will compared with actual
The budget will compared with actual
performance and variances or analyzed and
performance and variances or analyzed and
explained
explained
The strategic planning and
The strategic planning and
budgeting
budgeting
\ue000Both involve planning
Both involve planning
\ue000The types of planning activities
The types of planning activities
\ue000Budget is for one year and strategic
Budget is for one year and strategic
to 3-5 year
to 3-5 year
\ue000Strategic planning proceeds
Strategic planning proceeds
budgeting and budgeting is done on
budgeting and budgeting is done on
the basis of strategic plan
the basis of strategic plan
\ue000Product lines and programs structure
Product lines and programs structure
strategic plan, whereas budgeting
strategic plan, whereas budgeting
structured by responsibility centers.
structured by responsibility centers.

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