MBAA-102 Accounting for Managers – Unit 14

MBAA-102 Accounting for Managers – Unit 14

Objectives: the basic aspects of financial planning and the role of budgeting; various types of budgets; some new ideas and development in the area of budgeting.

Materials:
The relevant material is available here.

Questions:

1. What do you understand by ‘Budgeting’? Mention the types of budgets that the management of a big industrial concern would typically prepare.
2. What is Budget? What is sought to be achieved by Budgetary Control?
3. What is the significance of ‘Budgetary Control’ in modern business?
4. Outline a plan for Sales Budget and Purchase Budget. What considerations are necessary in the preparation of such budgets?
5. Distinguish between Master Budget and Financial Budget. How does management make use of Master Budget