BUDGETS 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 66 rapid-fire Q&A cards.
What is a budget in the context of budgetary control?
A budget is a formal financial plan expressed in quantitative terms, covering a specific future period, used to coordinate and control organizational activities.
What is an incremental budget?
Budget based on previous period figures with adjustments added.
What is budgetary control?
Budgetary control is a system of management where actual performance is continuously compared with budgeted figures, and corrective action is taken for any deviations.
What is the purpose of a selling and distribution cost budget?
To estimate costs of promoting and delivering goods to customers.
What is the primary objective of budgetary control?
The primary objective is to plan, coordinate, and control organizational activities to achieve defined financial and operational targets efficiently.
What is a functional budget?
A budget prepared for each function or department of an organisation.
What is a master budget?
A master budget is a comprehensive budget that consolidates all individual functional budgets (sales, production, cash, etc.) into a single overall plan for the organization.
What is a fixed overhead budget?
A budget estimating fixed manufacturing overhead costs for a period.
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