BUDGET AND BUDGETARY CONTROL
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is a budget in the context of banking and financial management?
A budget is a formal financial plan expressed in quantitative terms for a defined future period, outlining expected revenues, expenditures, and resource allocations to achieve organisational goals.
What is the meaning of 'budget period' in budgetary control?
The time span for which a budget is prepared and enforced.
What is budgetary control?
Budgetary control is a system of management control where actual performance is compared against budgeted figures, and corrective action is taken to address variances to ensure organisational objectives are met.
What is a material (purchase) budget?
A budget estimating raw material quantities and costs needed for production.
What is a fixed budget?
A fixed budget is prepared for a single level of activity and does not change with variations in output or activity level, making it suitable only when actual activity closely matches planned activity.
What is meant by 'budget revision' in budgetary control?
Updating an approved budget to reflect changed conditions or assumptions.
What is a flexible budget?
A flexible budget is adjusted or recalculated for different levels of activity, allowing meaningful comparison between actual and budgeted costs at the actual level of output achieved.
What is an overhead budget in cost accounting?
A budget covering all indirect manufacturing costs for a period.
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