Helpdesk: WhatsApp: 0736552548 Email: info@kenyaplex.com

HRD 104 Quantitative Skilles 1 Notes on Budgeting and Budgetary Control

Institution: Moi University

Course: Bsc in Actuarial Science

Content Category: Class Notes

Posted By: moseizy

Document Type: PDF

Number of Pages: 14

Price: KES 50

Views: 570 Downloads: 2

Summary

TOPIC TWO:
BUDGETING AND BUDGETARY CONTROL
Definition
A budget is defined as a plan expressed in money. It is prepared and approved prior to the budget
period and may show income, expenditure, and the capital to be employed.
Importance of Budgeting
i) A budget estimates the profit potential of the business unit.
ii) It is stated in monetary terms although the monetary amounts may be backed up by nonmonetary amounts (e.g., units sold or produced).
iii) It generally covers a period of one year. In businesses that are strongly influenced by
seasonal factors, there may be two budgets per year- for example; apparel companies
typically have a full budget and a spring budget.
iv) It is a management commitment; managers agree to accept responsibility for attaining
the budgeted objectives.
v) The budget proposal is reviewed and approved by an authority higher than the budgeter.
vi) Once approved, the budget can be changed only under specified conditions.
vii)Periodically, actual financial performance is compared to budget, and variances are
analyzed and explained.
Limitations of Budgeting
i. Estimates are used as basis for budget plan and estimates are based, mostly on available
facts and best managerial judgment. Since a lot of human element is involved in
exercising managerial judgment, it is but natural to give some allowance in interpretation
and utilization of estimated results. Budgeting based on inaccurate forecasts is useless as
a yardstick for measuring the actual performance.
ii. The circumstances are constantly changing and, therefore, budgets and budgetary
techniques will not be useful, till they are continually adapted.
iii. In order that a system may be successful, adequate budget education should be imparted
at least through the formative period. Sufficient training programmes should be arranged
to make employees give positive response to budgetary activities.
iv. Execution of budgetary control will not automatically occur. A continuous budget
consciousness throughout the organization is needed for achievement of this objective.
v. Budgetary control cannot reduce the manageria1 function to a formula. It is only a
managerial tool which measures effectiveness of managerial control.
vi. The use of budget may lead to restricted use of resources. Budgets are often taken as
limits. Effort may, therefore, not be made to exceed the performance beyond the
budgeted targets, even though it may be physically possible.
vii. Frequent changes may be called for in budgets due to fast changing industrial climate. It
may be difficult for a company to keep pace with these fast changes, because revision of
budgets is an expensive exercise.
.....................................

Below is the document preview. Purchase to access the complete document.

........

This is the end of this document preview. Buy to download the complete document.

More Resources

Grade 4 French Assessment Test Term 1 2021
Grade 4 French question paper term 1. It assesses the content covered in class in term 1.

Price: KES : 100
Grade 5 French Assessment Test Term 1 2021
Grade 5 French question paper term 1. It assesses the content covered in Grade 4 and Grade 5 in term 1.

Price: KES : 100
Grade 4 French Assessment Test Term 1 2022
Grade 4 French Assessment Test Term 1 2022

Price: KES : 100
2024 Grade 7 CRE Lesson Notes Term 1
Download CRE grade 7 cbc lesson notes. the notes are proffesionally prepared for teachers and students. Note: 1. teachers Should thoroughly exhaust relevant areas in substrands for student to...

Price: KES : 90
Grade 3 Rationalized Creative Arts Notes Term 1
Grade 3 Rationalized Creative Arts Notes for term 1

Price: KES : 100
Critically expose Jonathan Swift’s ‘Gulliver’s Travels’ to Post modernism study: LIT 410
Critically expose Jonathan Swift;s "Gullivers Travels" to a post modernism approach. - The paper gives an insight to how you can evaluate the above mentioned text using a post modernism approach. -...

Price: KES : 100
Business Studies: Forms of Business Units Notes
Short notes on Business Studies: Forms of Business Units ............

Price: KES : 47
Physics Notes on Heat Energy
A clear summary of heat energy topic taught in high school. Heat Energy Notes.

Price: KES : 29
AEC 418 Project Appraisal and Evaluation - Project Appraisal Case Studies
This is a well highlighted and well explained topic about project appraisal case studies. It has the following sub topics: (i) Transport networks (ii) Project identification (iii) Feasibility and...

Price: KES : 100
Second Year Human Resource Management Notes
These notes help build adequate understanding concerning the human resource management in an organization including its environment, both micro and macro explained in detail.

Price: KES : 300
Management Information System Notes for 2nd Year
I have prepared my notes after research and i think they have the content needed in this unit.They are 15 pages in number and they cover the major parts of the unit.The best way to proof them is by...

Price: KES : 350
Computer Studies Notes
Introduction to computer studies notes. Brief Overview: Definition of a Computer: - A Computer is an electronic device that operates (works) under the control of programs stored in its own...

Price: KES : 200
CCP 4I6: Security Design and Formulation Notes
CCP 4I6: Security Design and Formulation Notes Brief Overview: 2 Introduction Physical security is defined as: Physical measurers, policies, and procedures to protect an organizations systems,...

Price: KES : 300
UCU 104: Introduction to Entrepreneurship Notes
This is a summarized class notes document for the entire unit. The notes include some practice exercises that can speculate how the continuous assessment and final exams look like. Brief...

Price: KES : 1200
Medical Physiology Notes
These notes include the definition of protozoa, the relationships between the protozoa and the host, the reproduction of protozoa and taxonomy of protozoa.

Price: KES : 300
AAS 3316 Animal Health Management
These notes contain detailed information on livestock metabolic diseases,their clinical signs, the animals they affect,control measures as well as the treatment to be administered.

Price: KES : 100
AAE 3412: Principles of Agricultural Marketing Notes
The notes contain key principles and information on agricultural marketing. Brief Overview: 1.1 Purpose of the Course This course aims at introducing students to how the market works and how...

Price: KES : 250
Kenya Methodist University Diploma in Pharmaceutical Technology Pharmacology Notes
The notes define various terms used in Pharmacology and various modes of administration of drugs. They also state the various forms of drugs, definition of bioavailability of drugs and the factors...

Price: KES : 250
KCSE 2016 Agriculture Paper 1 Questions and Answers
Agriculture Kcse 2016 Paper 1 questions and answer. This is good revision material for the candidates. Brief Overview: No.1.List four factors that would determine the stage at which a crop is...

Price: KES : 30
Form 3 Biology Sample Questions and Answers
This document contains comprehensive notes for form 3. They are very beneficial to students and teachers. Brief Overview: 1. a) i) What is meant by the term binomial nomenclature? - scientific...

Price: KES : 290
Geography Form 2 article on Batholiths
This is an easy to read article on Batholiths that is comprehensive but enjoyable. It simplifies the description of batholiths. The objective is to make the topic less abstract.

Price: KES : 50
Evidence Law Notes CLS 202
The notes are structured in a systematic way according to the council of legal education requirement for the core law subject Evidence law. Case laws, statutes and the constitution are provided in...

Price: KES : 950
Physical education notes for PTE 1st years and 2nd years
Looking for Primary Teacher Education (PTE) notes for physical education 1st year and 2nd year? You can find them here. These notes helps the tutor in lecturing and the student teacher in revisions...

Price: KES : 200
Solved Questions for Macroeconomics
Solved questions and answers for macroenomics. High quality questions with answers. Brief Overview: Chapter 3, Question 1 (Evolution of the household) Determine whether each of the following...

Price: KES : 259
Education Notes for Primary Teacher Education (PTE)
These notes may be used by tutors in lecturing and student teacher in revision. This document summaries the main content of the new syllabus for teachers’ colleges. Besides samples examination...

Price: KES : 200
English Methodology Notes for Primary Teacher Education (PTE)
English Methodology Notes for Primary Teacher Education (PTE). These notes may be used by student teacher in revision.. Brief Overview: Definition of Language Language as a word is based on the...

Price: KES : 200
Kiswahili Ushairi Notes
Best Ushairi Kiswahili notes. It is in point form to help both the teacher and the student in Ushairi. Brief Overview: Kitengo Ushairi Mashairi yanaweza kugawanywa katika aina mbalimbali...

Price: KES : 100
Kiswahili Notes for Teachers and Students
This document contains Kiswahili notes which may be used by the teacher in teaching and the student in revision. Brief Overview: STADI ZA LUGHA Katika Kiswahili kuna sauti mbili ambazo...

Price: KES : 200
Detailed Oral literature Notes and Model Questions
Oral literature is one of the are as tested in Literature in English of the Kenya Certificate of Secondary Education Examinations. The other are as in this paper include The Novel, Drama, Poetry and...

Price: KES : 100
Biology Form Four Notes on Evolution
FORM FOUR BIOLOGY CLASS NOTES TOPIC: EVOLUTION Topic objectives At the end of this topic, the learner should be able to: I)Define the term Evolution II) Describe the origin of life III) Describe...

Price: KES : 50

HRD 104 Quantitative Skilles 1 Notes on Budgeting and Budgetary Control

Summary

More Resources

More Content By moseizy