Budget essay papers

Although different budgets may be prepared for different activities, e.g., raw material budget, production budget, sale budget, etc., yet co-ordination between the different activities is provided by the master budget. Essay # 3. Types of Budgets:

Essay # 3. Types of Budgets: In budgetary programme, sale is a starting point, as sales factor becomes the key factor in the ordinary course in majority of cases. According to W.W. Bigg, “This is probably the most important budget, as it is usually the most difficult to forecast or attain.”

Flexible budget is one which is prepared in such a manner as to facilitate determination of the budgeted cost for any level of activities. It is also known as Variable Budget. Essay # 4. Requisites for the Preparation of a Budget: For budget preparation following considerations must be made:

Objectives of Budget: A system of budget is necessary to plan and control the activities pertaining to production and sales. The objectives of preparing a budget are as follows: The plan of action depends upon the policy that the business decides to execute. Budget is a means for the top management to control the business operations centrally.