UnH-2 Budgeting and udgelay Cantaul

heuod busgel s denved tom a licvch Hein Bougeleuhtt

meeling
a leatherpauch n hieh funds ae appoptIaied 1oY _Meeling
avdiclpaled eApens.e)
A_Budget s a uneical sialement exptesslng9 the plansspaltcle
ond gtals of the ehietpxlselox a detinite peYnid In futY

rincipes o budgeilng-
Sponsoiedb PManage.ment
Deciding Respansibility_Cenlie aud Can tallable. Cas3
KantteipaBtan b Respon sible SupevisaKs
Budget £oucation
5Budget Petaid
6nitox miky n Budget and Accoun tlnglexmnal.bgy
Kesonably AHa.inahle Goals
&Signiticant £xeptions
Bud gat Cost
Clea distinclton hetween slaff _and lve lunctlan
ILle Reiew the oudget Estlmate
DAppaNal
Meaning of Budgelaly Contsl_
Badgeatry cont l s a dchnique of mabngeha_consl hiough Bu
Tovales nt isl OveY ne pracedute dapled achlele slar
elcinivedunder the au gels
BuagekyCondol Is a aysten hich uses budgels_ as_a meas
planning and contio.lbng all aspecis o
0x sexites
1 pioducing Selltng camol
selltng ca
 ASSMAte
Date
Page

Chakacdeislics
Planing Co-otaination
Rec.ovdng Condiol
Apialsal and follow up

ganisatlon fox Bud.gelary Contol

a naglngDixetay
Budget Commi Hee
Budget0tticey

Sale Paoduction fuxchase inante etson

Officey Mana ger anageY
an 49eY Mona.ge
Saving Budet roduckoBadaet urchase Capial bubt Rersonnel
budget Managey
Advextising Budget 2Nepoiis and Lash Budgct
Manteranre budgt InvenBory 3 Wasking Capidal laboul welta
SEllng- land Onst
3 Plawi upmeil budget Budge Budget
ulan apkadge
4 ReSenkch and lelk ) Masler Budget
Budgc
Sectelaty o offe Managey

Ad ministaton apenges Budget

Co-otdhna tton
 Date
elsste
Poge

Flexible BudÙe
A lekible budgel s base on he. st yaioity
Concept o ast valiak
fothsonept the os an be e ated do poducton
class1hed as led
and on he bals hey nbe
a

oilable. osthes atlous ht

oxlable Csts amd Sem
alleded Ha a laxge exlent bythe eyel ot acdiuity
Valyng degiees
hed asts ae Jelated mosily la the pioid
o i ine and
Conceleduih he level p3aducitou oY Sluy e_Sue
ake constaut oVe a eleVaut Jag ot aciuiyMcn
elel actuily s 2eothe hxed ast will be n ext a

atlable astsay secdly a paogothionalybith dhe blua

o achtsidyA220 level_aaci, hee cost aill nod le
xistencaheseosoe the ost ot dalrg the bu.slness

Semi Yasiable. Casls_ occuipy aIn betueen pasittan baluece

hxe and VaxBable_CostsA palt o these osts s alat
ad kst Is ed.

Sumnaly lexible. budgel Is plepated at difetet Ievelsot

of pioducdion with elp o ixed sss Vaxtale Cast Se
Vovlabla Css
 alassmate
Date.
Page

he allolng dafa ale audlable In a tmahutacfunng ompany tox_a

halt yea oi
iked tApenss
lages and Salaties 8,40,000p
Rent Jodes, kaxes 5, 60,060
1,00, 00
Depleciation
Salaxy Aininistalton xjenses 8,90,000o
Sem Vayiale kPense (A 50y. Capocihy
latntenance and emlis 2, 50,060

Indilect labaux 9,9,000

Sales depH Salkites 299,000
Sundhy Ad rinlsl 1alive säpenses 2,60,090
VaYiale k pen sej
Madeial 2,00,090
Lobsr 25, 60,ooo
OtheY 3$O Oo

ssume thoat the. AKed.expendes fetot onsiat fsi all leuelsal psasdudten,
SemiVaiahe exenses lenain onsBaut b/ 5 an S/ sl capaciy
indieasingby l0 bAa 65Yand 807Capaci and by 2a
pbR0 and loo capacity
Sales a Vatious leels de
Capacily 1,00,00,06o
L29 00, 006
35 Capacity
,50,00, 000
901 apaca I, 10,00 000
lo07 Capacily
he poke a flexie bslet bi he halft yeay and loxecast hspotilu
o 60 25 90 *bot capacily
 Date
JASSMALE
Paga.
lexikle bdai
CShou ingotal Caat and
slits.at iletentlevel si Aul,
Raxticulars 50 60
Fixed Expenses.
lages and Salaies_
810,000840,000 810,000
ent, Rales Takes 5,60,
0o05,60,000 8,40,006,10,
lepatctatton to9,o00
5,60,00
5,69,0005,60,
560,0 00 5,60,
Salany Admln: zp 890,000810,00 09,d 00,o0o,0o,te
00,00
|8,90,o00 8,90,000 |8,19,pem
Vaxiable Apenses
Malealal 24,00,000 2,380,00 36,00,
La bouy ooo 3,20,00o
5,69000 00,c
Othex 312,0033,10,0o046,08,
|3,80,0004,56,0005t,00 810007,6o 0005, 1 0
, 6o
Semi Vaxiable Sapentes
alptehante Repal 2,50,00 o 2,50,000 25 O00 3,00,o0o
Tnditect lhbos ,90, 000
9,90,000 19,89,Ooo 3, 00,0oc
Sales DepH Salasies 10, 000 90,00o 11,88,000 L, 88,00
3, 19,000
Sundy Admlh: £kp 2,60,000 2,60,000
3,48,000 3, 13 o0
3, 12,o00311,0
Total Cost 1,01,20,00 o,1,88,o00,2,6t00
Po Fit Ct)/ Los ) 0
4t50,a09SE,18, o
-11,88,000 61,000 +3,54, oo +11,81, 00
0
,00,00,00o20,o0, 0oo5o, o0,o00 1,70, 09
 elassmate
Date.
Page

hxed tapenses
42,00
Hahagemeni Salaxles 28,000
Rent and lakes
35obo
Depjeclaltan o Machhery 44, 500
Sundry afkhce Cast
Semi Vaxiakle Expenses-a 50/:Capacity-
Plant Matntenane 12,500
Lndiiect absu 49,500
Saleman Salalies and expenses 4,500
3,000
Sunday 2xpehses
Veviable ExpenSes
1,20,000
Madexials 1,28, o00o
Labouy
19,000
Sales.mans CommiSSiOn.

n 07. and 70/

Semi aliable expenseshemaln cAnsBant bettiee
Capaciy InCTese by lo7 af the abo Ne
igule bekaleen
and ncYeasedoy15_of khe ahove
401 and 857apacily
Rgutesbetueen 57 and lo Capacity Sales at g07
capacikyRs 60,oo and atloo Capacily Rs
859,aos
 ASSMALe
Date
Page.

exible Budget
Cshouing Bdal Cast and Ioliis akr dillkaent levelof adh
Payticulars_ 50/
fixed Expenses 2,000
Wlauageeni Sahies 42,000 4,000
Rent bics 28,000 .28 oo 23,000
85, 000 85080 85,000
Dep' ol ach nery
44,500 q4,S0o 44,50
Sundry oitce Cost
Semi laxiale Expeb ses
Plat nolnteaece 12,50o 13,15 14,395
Lnd iect labour 49,500 54450 5415
Salesman Salarles Exp H500 5,150 16,635
Standy &xD 13,o00 ,300 4,150
alable Xpen ses
aiexas 1, 20,ooo 9 2 , Ooo 240,06
labous 1,28,o0o 2, 0,8o0 2,56,0oc

Sales mansCommlsslon 19,o00 30400

38,oo0
Tatal Cost 5,06,000 75, 150 286,11
PoitCE) LossG) 4860 63,545
S80,000 -85 00
 elAsSMAte
Gst
xed =4otal Date
Page

Waide the lowing. dala o_601 achaik plepake abudt lor

pxoducitonaB g0 and las tapaciBy liaductlon at cr
achvily-6os uniis Vayloble
PYnt Sans
bul totol
Madettal Ks loo pe nt
Vaxlable
lalbau' Vaxiade
Xpenses Rs o Pek Linit
facloyyExpehses 000 (Yo7.fieed Semi Valtable
Semi Vatiable
Adnmnstvatlue Exp R 30,033 Lot tihcd)

fart iculcs apacily Capaci t

TGhal estiun |Total CostPe ni TotalosUnifs
60,060 Jo0 $o,060 lo 6 lgoso o0
Male xial
LabouY 24,0064o 3),00 4 |4000040
Epenses 6,000 o 8,000lo lo os0

tacoxKpensel 20 16,0016
hxed (Haso0 Kio)16.000 6T|16,000
o30o
Vatiable(8000 X(a1) yc4o 000
Admi ntshade Sepenies
hxed (3o,o0o x(o/ 18000 3013,00 22-518,600
12,000 20 20 29 000 20

Vainkle(30,o00.X 40)
,60,900 266.64|2,0),0o 525 2,4900 21
Total Cost
 ASSMAte
Date
Pags-

A Campauty ak pesent
opeoLng at 80/ eapacity usduter
Sel a0o0uk Belou gluen ae the expenses pex uni
Dtec nalexial
Diteck labal Rs pel unt
fackaxy 0vehed (2o ixed
ofhke dnelhead (o Variabe) Rs 3per nt
Selhng and DsBaibultou Overhead5o. zed) Rs 2pet unit
Sellhg ie Ra 45 pe bnit
hepare a bud, get at £of capacidy f q97 apacliy

Paxiculas Ca pacily 8o fex Unid 6fapeuy Per Unit o/ apecily fer n

Tolal (ost 4o,000 Tekal ast 30000 I Tetol Cast 5,00
Dnhect Mate xol 6,00,o00 15 450,000 15 6ASo00 15.
One labou qoo000 300,000 450,0 00 0

kacdoy Oeahea
SKed L5X30) Goo00 :5
60,000 20 6000133
Vaniable(5X30) ,10,0935 5, 0003:5 59500 35
oflie ovehead
fined (3x 48000 2
48,000 6 48,000 -06
Vatiable (3XSof) 4000 8 5000 8 8, 600
SellngOist. Over he(
fxedx ) 40,060 1 90,000 3 oO00 0-88
VoxtadkSoX) uo,o60 1 3o 4,50,000
Selting li 45 45

5X30 15 15X0o06-60,000
5 O 3:5 3-5Xu0,000
3XYo7E|-2
3x60 L8 8xa os 2, ooo
 cASSMAte
Date
Page

aiom he nlex.mattoo qlven bedsu ple pate ileXi ble kadget ot koy
md s07 apactktes arnd he ital_ovehed ale apelent
on diecd uag.es at he capaciles

A 0/ aak Ak51 lapaciky Aed.apa

Neitable oe head ,500
Indnec kerta 22S00
ndtectlabai
SemiuaxlaSe ouethead
lecatcik t haed,6o/-vaiable 3150
aed Ovexheads
Salatles 1,00,006
IMSufane 5000

Dep Tclalon 25, 006

Kepalks and Matnian.ante (go. xe Yaxtable 3750

67 CapeciGo7. (apacit y 8or Capac
Nalable Oyeahe.ads
Indliect Maadena ,500 6O00
Inclte Labosy 2500 L8Ooa
Semi axiable Ovehheads
Slecxicily 15000 150so ISooo
o hxed
22,500 8000 24006
GoY anable
Re pall and Matndante 3660 3000
30 00
So led_
20 alable 50 Soo
 elsSMAe
Date
Pags

xes Ovahéeds 00,06

,000 O0
Salosles
5000 5,00 0
lngukane
25, 000 25,000 25000
Dep
Total oveshead 2,01, 250 I20, 600 2,01800
ieet wogs +0,250 +32,0 00 +2,933
Total Cost 241,500 2,22&oo 2,42,233
2,0250 Klao 110,600 xloo 2,08o0 xle-
0,250 32,200 43,33
500/ 592/

HEs and lust nlergises is cuTleily suaking ak501 capa.cik

and piaducla 10,0aá unds sttmale the p1ottks af s Compan
suhea.it
itwatks od 60. and t0f Capacity At 60 Cap.act
the joud maletlals Inttesasby 2 and the lelhng ne
falls by 3 A 0- Capadilyhe Kaw matemal cos
Intheties_by and e Selhaa, pnce fal lby S A
507 aP_ai ugs kiah phduet cat ost R6_p.a
Lud ad 1s sald a s 200pu untt cast a
Ks 8 Is Mado p aJ under

Cost of ale Klal

Aages
kacoy aVexheads s 20 (uo/. ixe
B3a Sof fixed)

8Xlo.c592 20S 6

29 6
 clAsSMAte

Date
Page

507 T
Padlculats TOpoo u

sdeial loo |l9,00oD ]o2 22w eo15 600

Nage 3o 30o0030 3,o0 bo30

tackony ouehend
80,000| 66 80,0005t| |fo,0s0
000 12 68, o00
lalable 6or 12 1200012 y

Adin 1SttaBton oves head 150oo o

15o00 I0a1
ned 50 15 15o00 2
Vamable. 5o. 15 150o o 15 800 I5 2l, ooO

2138000 12492| 298Ysoo0

18000o28.16

266o0o0
Sale 200 00o 2328000

37X5 -X o000 159006

 lAssMAte
Date
Pags

A comparn (Todutes a stand.agd phacuek The glmaded

ahe Fslous
Kase malettal k u Dtect lalood s 2 latable oulhead l s
The semi Vaiable assks aseIndhiec haleral R 35
Lnditec Lalgaur Rs 1sk palss k 520
ue atadle tagls_pel unl nrkaded uA Sem atlable s'te
Lndtec nglatalgO-as Iodbect labsuk -Rs. o08 kpatts a
he tited csae facdaty s0o0 Admiristaton 2000, Sel
and Dsdibudion Rs 2500
lheabole o_ae fos Po7 Aina caa.ci poduclg_oo
unis 1e selttng pAtre 1 s 30 peh unti
Piepake he fleaible badze r 60/ So/. Rld67 of_
nO.nal caha.Ciilesuth the alp ot 4 ahoue_Naa
latt.eulag 30.12bwt o. 10o80Y. 800 loo/.l6om
TC TC Ont UNnt
atu Dolexta 9-002 Yoo 3,200 400 0004.0
Dtecd laba Hoo 2 1200 2 1600 2-00 200020
Varla.ble Ovel hel350950o 0005.00 |ooo 50o -
S00
Indtecthalanl
Jataldeo6X 3)35 0-05 30 005 Mo0-05 50 0-5
hxed (235-35)20000-28 200 0-33 200 O25 200 0 20
Indtecd labow
Vanable8X1) 56 480-08|64 08 0 0-
xcd(156-56 o0 O:14 looo17 lood13 oo00
Repal
60 0-
axtable (d-l02X70) O-10 oo
e d (530-0) 500 0-91 Soo 0-83 So0 03 5 00 0-50
200 0
factosp 2-85 2000 33 2o60 2 50 2000 2-0
A diatshiation 3000 -29 3 o00 5-00 3oso 35 3 oo 3-0
sellns&_Dsibe1 2500 3-5|2500 |47 2500 3-13 2500|9
2500 5
 alAsSMAt
Date
Page

ToHal Cast+ 1616 15038 17381 19530

&P3olt 4839 296
2lo oao18oo3020o30 30,00o 30

The cos ot ain aktde ot a copacily leve _af 5000 uniis I

leneksundey headlng X f a Vodlakland1S 1ln
CapacilyeitheY_ahove oi beaud the Indluidual expensel
VOy a indicaterl under hesding Y
X
adalal Cast 25 000
La bour Cost 15,000
YoueY J,50
RepalYsand Plaiatune 2,000 257
stote
Enspectian So0
Depttclakto 0,0 00
Ad minishadten Oveaheod 257
Sellng Oueiheads 3006 507
62,25
Cos pe uhit 1:55

ygo9
hnd he ant cost af psadael a piola.cftoa. levels_af
nis Kgoo uwiks
 ASSMAt
Date
Page

flexihla Budget
5 o00 Unit Y000 Unit

Pasticulas TC P P-0 TC P- TC

MaxielaL o 25,000 5 20,000 39600 5.

Laboux Cast ISooo 3 12,000 3 18,00

foue
Vaxlable (0-2 X5009) 000 0-2 8000 .02 1200 2
ixed (o 05X Eooo)250 005 25000615250o-
Rep aodmabadendnc
Valable I500 3 1oo03 1800 o3
ixed 5oo O So0 125|Soo0-083
Stsies 02 8000 02

Inspectlon
Vaxlable oo 0 02 0 O-02
hxed 400 &O8 00
Dep 2 8050 2000
Admaishtoi oveshed
Vaxlable 1280 O5 ooo
5 Sooe 15
iked 3?50 753950 0-94 3 3250 -6
Se ling 0veXhead
vaxlahle 1500 3 |200 3 800 0-3
hxed 5000 3 S00 395 Sbo O25

Total Cast 61,950 12-5S 5l;N8o12-87 020 12-3Y

 elAsSMAte
Date
Page

ThebudgManager o Jugiler slecttlcal LUmiled s kepaklng a

leiblebudger to the AccAundlngYear of 2aaY
lae eutihy(ompany rodue apiacduek 0&XI Dhecd moleal
CostRs pu Diiedlabour cost_akeag Ks 2-50 per hout
aandnd lqute
t s KYto pvocduce one unikaf his pToducl
Salemah ae pald aMnisston foY Rs 4pès unit gs FiAed
Sellt ng and admiaisthattveexpenses ahgund ts Rs gs Oas yY
2
anu tacfuiing oxeahead is_estmales in the ollowng
ngaaunis
bhdtr Secltd candiltans af Valune
83 1,2006
Apenses
Induect Matetial 230,000
Fndtiect lahou , 50,000
In&pectlan
Ralnlenae
Superisto 2,3000o
Dep of Plant Mahinery 40060
ngtheeing Setle ,000 14000
Tstal Manufa ctuulng_0velleret. 30,000
NoTmol capacily is 25,000 units
hepate a budget shslng fstalLcast for L40,009 nil
 Date
assnte
-
pags

flexible Budhat ia L1000.0

faticulars
Diaect Malestal 9,80,000
Nec LaboutR 2:5Xl&hr) X1H0,o00 5,60,000
SalesmanCommisslon L10,00.0
lixed selhag k AdniLntsts.chve xpenses 85,000
Tndicc haletal 30800 02-20
Indin.cel labouy 1,5.006 3
Inspechlon Lo5,o00-03s
Depleclatlon 9 000
gIneeing eulre
Malnenau.ce
hxe 2000
Vaxlable
Supelvtslon
fixed | 5 000 -39
Vatiable 1, 68o00

lotal
18,55 o0o
 lAsSMALe
Date
Page

os ktne Nole Vaxtable

Indiect Malelal 2,61,00o-22 330,000 22
20, o 0o 5,00o
Vanlable 8500
Lnddec Labou Y 1Sooo-:25 1as 125
,20,00 50,0 0
Vaa ble

Inspecdion 0,000 15 1250 0 5

15, oo
L20, 000
Semi
0 ,20 00o 0.6R mable
Maintenanle I 5o000
120 0 Oo

Szm
Supe US100 23o00 5 :5% \atabk
290OS

Smiyatiala FHV
F(VCpe unit X (ost)
Vaxtable Cost Pesunit_In Sei ay1able Expe hses_
2DitNenle In obt EXjee 0vethead at Tusleve
DFkenee In the aut pud at ttoSaMe leve

maintance 02000-8yood 000 06

120o06
150ooo -

8000 z FtC06X 12000O) j0)000= fAlox ISooe

8o602 F+72000 Jo2000: F+ 9soo0

P 1ogo -2000 -1220

2000
 lasSMte
Deh D n
Page-

mnufacdating Compary submi.ks the fallauluy aures os tne

guoxierot lo03
PtoductX Praduet Prs cduct z
Sale n Units_Jan 5og 3000

eb 0s0 5,000 9,o0o

Molch 30,0 00 35060
Sellbng Palce u Rs 10 ks 90 Ks0
Tageks fox 1dattasJsy
Sales Osan tity lnceae 20. lo
Sale frtce IncheaSE_ lo 25
Stock pasikon 1S San Joo
Jan 20o1sale Bo SOV
Sock Posiaan 3 Patch 208 2poo 25,000 5,0o0
sock pn.sitonend Jan Feb
subseqtuet nontb Sales 5 0 507

You ate epaike.d da ptepale the Sale and prdueton budges

fax the qualer D o: Sho uarKng Clearly
 Date
Sale Dualget fos the duetler of 206
fxo ducf
Monn PxodluckXradud
Units Price Valuenits Vnalue nids Psice Vale
50 559000
30,000 300,o%0 33000 22 326,000 1
sJan

,05,0o,ooO 50 5500
2,o0 20 0002300 22

E00l|o00 50 5S9so 0
Mabch 36o0003goco 3 Soo 22

900000 19000
278000 33 o0o 165 000
90p00

Pocdu.cion Ssdget foy Ouakle a.ooy

Paod u ct Pho du ct 2
ha duct X
Paattaulats
Jan Feb mica Jan Feb Madh dan eb mosth

Clodna Sreck 20008o00 2o0co3 13 150

19 250 )5o0@SBOo®5500 5000
38500loo0 11000loo
Add Ssla 3000 21000 36000 33000 29500
2000 Y2000 5Cooo
675046150 62500 165001650 1600a

5566
les 0-550 0 000 |o00 I6500 A5o|95oS5005500

Posductp 1000 30000 38000 305o|33000 4250 looo lo0o lo5o0

ovtpot

9500D |lo9500 325o0