Budgets & budgetary controls
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 specific future period, coordinating activities to achieve organizational goals.
What is the purpose of a production budget in manufacturing organizations?
To plan quantity of goods to be produced in a period
What is budgetary control?
Budgetary control is a system where actual performance is continuously compared with budgeted figures and corrective action is taken for any deviations.
What is a revenue budget in the context of government or banking?
Budget estimating expected income from various sources
What is the primary objective of budgetary control in a bank?
The primary objective is to plan and control income, expenditure, and capital so that the bank's financial goals are achieved efficiently.
What does the term 'budgeted cost' mean?
Pre-determined cost planned before actual activity occurs
What is a master budget?
A master budget is the comprehensive budget that consolidates all functional budgets (sales, production, cash, etc.) into one overall financial plan for the organization.
What is a materials budget used for?
To plan quantity and cost of raw materials required
Video classes for this chapter
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