Tag: budgetary control system

plant Utilization Budget – meaning

Audit procedure to determine the value of related party transactions

Plant Utilization Budget is budget  prepared for the estimation of plant capacity to meet the budgeted production during the budgeted period. It is a forecast of plant capacities available for fulfilling production requirements as specified in the production budget. This budget is expressed in working hours or other convenient units. read more

Short-term budgets – meaning

Short-term budgets - meaning

Short term budget – These budgets are usually prepared for a period of one year. Sometimes they may be prepared for shorter period as for quarterly or half yearly. The scope of budgeting activity may vary considerably among different organization. read more

Current budgets – definition

Current budgets - definition

Current budgets are prepared for the current operations of the business. The planning period of a budget generally in months or weeks. As per ICMA London, “Current budget is a budget which is established for use over a short period of time and related to current conditions.” read more

Performance Budgeting – meaning.

Management accounting revision question on zero based budgeting based on ACCA & DRURY

Performance budget has been defined as a ‘budget based on functions, activities and projects.’ Performance budgeting may be described as ‘the budgeting system in which input costs are related to the performance, i.e., end results.’ According to National Institute of Bank Management, Performance budgeting is, “the process of analyzing, identifying, simplifying and crystallizing specific performance objectives of a job to be achieved over a period, in the framework of the organizational objectives, the purpose and objectives of the job.” From the above definitions, it is clear that budgetary performance involves the following: read more