18-8-ET-V1-S1 Presentation BC

UNIT – V
MODULE - VIII
Budgets & Budgetary

Control
TOPICS TO BE ENLIGHTENED
 Introduction
 Meaning of Budget and Budgetary Control
 Objectives of Budgetary Control
 Advantages of Budgetary Control
 Limitations of Budgetary Control
 Essentials of Effective Budgeting
 Types of Budgets
 Master Budget
 Fixed and Flexible Budget
 Performance Budgeting (PB)
 Zero Base Budgeting (ZBB)
 Budgets Reports
 Practical Problems
Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

INTRODUCTION AND MEANING
 A budget is an accounting plan.
 It is a formal plan of action expressed in monetary
terms.
 It could be seen as a statement of expected income
and expenses under certain anticipated operating
conditions.
 It is a quantified plan for future activities –
quantitative blue print for action.
 Budgeting is a management device used for short-
term planning and control rather than purely an
accounting exercise.

DEFINITIONS
 According to CIMA (Chartered Institute of Management
Accountants), UK has defined a budget as “A plan quantified
in monetary terms prepared and approved prior to a defined
period of time, usually showing planned income to be
generated and expenditure to be incurred during the period
and the capital to be employed to attain a given objective.”
 Keller and Ferrara state that, “A budget is a plan of action to
achieve stated objectives based on predetermined series of
related assumptions.”
 G. A. Welsh says that, “A budget is a written plan covering
projected activities of a firm for definite time period.”

OBJECTIVES
Planning
Communication Coordination
Objectives
Measurement
Control of
Success
Motivation

ADVANTAGES
 This system provides basic policies for initiatives.
 It enables the management to perform business in
the most professional manner.
 It ensures team work and spirit of support and
mutual understanding among the staff.
 It increases production efficiency, eliminates
waste and controls the costs.
 It shows management where action is needed to
remedy a position.
 Budgeting also aids in obtaining bank credit.

CONT…
 It reviews the present situation and pinpoints

the changes which are necessary.
 With its help, task like planning, coordination
and control work effectively and efficiently.
 It involves advance planning which is looked
upon with support by many credit agencies as a
marker of sound management.

LIMITATIONS
 It brings the rigidity in operation, through quantitative expression of
relevant data, which is harmful.
 It is expensive and thus beyond the capacity of small undertakings.
 Budgeting cannot take the position of management but is only an
instrument of management. „The budget should be considered not as
a master, but as a servant.
 It sometimes leads to produce conflicts among the managers as
each of them tries to take credit to achieve the budget targets.
 Simple preparation of budget will not ensure its proper
implementation. If it is not implemented properly, it may lower
morale.
 The installation and function of a budgetary control system is a costly
affair as it requires the employment of specialized staff and involves
other expenditure which small concern may find difficult to incur.

ESSENTIALS OF EFFECTIVE BUDGETING
 Support of top management
 Team work
 Realistic objectives
 Excellent reporting system
 Structure of budget team
 Clearly defined business policies
 Integration with standard costing system
 Inspirational approach

Dr. Manoj Shah, Principal Investigator,
NMEICT, MHRD Delhi.
TYPES OF BUDGETS
• Sales • Fixed • Long term

• Production • Flexible • Short term
• Raw materials • Current
• Purchase • Rolling
• Labour
• Production
Overhead
• Selling and
Distribution
• Administration Cost
• Capital Expenditure
• Cash Budget

FUNCTIONAL BUDGETS
SALES BUDGET PRODUCTION BUDGET
 The sales budget is an  The production budget is

estimate of total sales which prepared on the basis of
may be articulated in estimation production for
financial or quantitative budget period.
terms.  Usually, the production
 Sales budget is a principal budget is based on the sales
factor for budgetary control. budget.
It is a starting point of  While preparing the budget,
operations. the manager will consider
the physical facilities.

FUNCTIONAL BUDGETS
RAW MATERIALS BUDGET PURCHASE BUDGET
 Direct material budget is  In this budget, the main

concerned with cost per unit focus is on reduction of cost
and rate per unit. of purchase.
 It shows the estimated  It consists direct and indirect
quantity of raw materials material and services as
needed for production. well.
 It deals only with direct  It helps the purchase
materials whereas indirect department to plan forward
materials are counted under contracts.
cost budget.

FUNCTIONAL BUDGETS
LABOUR BUDGET PRODUCTION OVERHEAD BUDGET
 Labour cost contributes a  The production overhead

major component to overall budget represents the
cost structure. estimate of all the
 Types: production overhead –
 Labour requirement budget  Fixed
 Labour recruitment budget  Variable
 Semi-variable
 This budget is prepared in
each division of a factory for
estimation.

FUNCTIONAL BUDGETS
SELLING & DISTRIBUTION BUDGET ADMINISTRATION COST BUDGET
 This budget is prepared for  This budget is prepared for

the estimation of selling and the estimation of office and
distribution costs. administration costs.
 This budget is associated  Most of these expenses are
with sales budget and would fixed so they should not be
serve as a base for analysis too difficult to forecast.
of market conditions.

FUNCTIONAL BUDGETS
CAPITAL EXPENDITURE
 This budget is focused on the
activity involving the
purchase of fixed assets.
 New building
 New machinery, etc.
 This budget is normally
prepared for a longer period
than the other functional
budgets.

FLEXIBILITY BUDGETS
FIXED BUDGET
 A fixed budget is prepared for one level of output and one set
of condition.
 There are lesser chances to make any alterations in the
budget once prepared.
 This budget is not useful because the conditions go on
changing and cannot be expected to be firm.
 Fixed budgets should be prepared where sales, production
and costs can be accurately estimated.

FLEXIBLE BUDGET
 This, being a dynamic budget, is designed to
change in relation to the level of activity
attained.
 Flexible budgets are a part of the feed advance
process and as such are a useful part of
planning.
 It is more sensible and practical, because
changes expected at different levels of activity
are given due consideration.

METHODS OF FLEXIBLE BUDGET
 Formula method
 It is known as the Budget Cost Allowance Method which
can be prepared before and after a financial year.
 Multi-activity method
 This method involves computing a budget for every
major level of activity which is known as interpolating
between the budgets of activity levels on either side.
 Graphic method – estimates are presented
graphically

MODEL OF FLEXIBLE BUDGET
Capacity Utilization
Particular
60% 80% 100%
1. Prime Cost:
- Direct Material - - -
- Direct Labour - - -
- Direct expenses (if any) - - -
Total (A) - - -
2. Variable overheads:
- Maintenance & repairs - - -
- Indirect Labour - - -
- Indirect Material - - -
- Factory overheads - - -
- Administrative Overheads - - -
- Selling & distribution O/H - - -
Total (B) - - -
3. Marginal Cost (A + B) - - -
4. Sales - - -
5. Contribution ( Sales - MC) - - -
6. Fixed cost
- Factory overheads - - -
- Administrative Overheads - - -
- Selling & distribution O/H - - -
Total (C) - - -
7. Profit or Loss (C- FC) - - -

TIME BUDGETS
LONG TERM BUDGET SHORT TERM BUDGET
 It is prepared on the basis of  It is prepared on the basis of

long term forecasting and short term forecasting and
displays a long term displays a forecast for one to
planning. five years.
 It is mostly prepared in terms  It is always prepared in
of physical quantity rather monetary value and is more
than of monetary value.` specific than long term
budget.

TIME BUDGETS
CURRENT BUDGET
 A kind of short term budget which is prepared for

maximum period of 12 months.
 Normally, it is prepared for current affairs of the
firm.

CASH BUDGET
 The cash budget is a sketch of the business
estimating cash inflows and outflows over a specific
period of time.
 It is a mechanism for controlling and coordinating
the fiscal side of business to ensure solvency and
provides basis for forecasting and financing required
to cover up any deficiency in cash.
 Cash budget assists the management in determining
the future liquidity requirements of the firm,
forecasting for business of those needs, exercising
control over cash.

FUNCTIONS OF CASH BUDGET
 Make sure that enough cash is available when it's
required.
 It designates cash excesses and shortages so that
steps may be taken in time to invest any excess
cash or borrow funds to meet any shortages.
 It shows if capital expenditure is financed
internally.
 It provides funds for standard growth.
 It institutes sound basis for managing cash
position.

ADVANTAGES OF CASH BUDGET
 Usage of cash
 Allocation of capital investment
 Provision of excess funds
 Pay-out policy
 Provisions for acquiring funds
 Profitable usage of cash

LIMITATIONS OF CASH BUDGET
 Complex assumption
 Execution problem
 Inflexibility
 Costly

METHODS OF CASH BUDGET
 Receipt and payment

 Adjusted profit and loss account
 Budgeted balance sheet method
 Working capital differential method

MODEL OF CASH BUDGET
Particular January February March
Opening Balance - - -
Add: Receipts:
Cash Sales - - -
Receipts from Debtors - - -
Interest and Dividend - - -
Sale of fixed assets - - -
Sale of Investments - - -
Bank Loan - - -
Issue Shares & Debenture - - -
Others - - -
Total Receipts (A) - - -
Less: Payments
Cash Purchases - - -
Payment to creditors - - -
Salaries & wages - - -
Administrative expenses - - -
Selling expenses - - -
Dividend payable - - -
Purchase of Fixed Assets - - -
Repayment of Loan - - -
Payment of taxes - - -
Total Payments (B) - - -
Closing Balance (A - B) - - -

MASTER BUDGET
 The master budget is a review budget that
combines all functional budgets. It may take
the form of Financial Statements at the end of
budget period.
 It embraces the impact of both operating
decisions and financing decisions.
 It provides the necessary plan for operations
during the period when all detailed budgets
have been completed.

PERFORMANCE BUDGETING
 A performance budget is one which presents the
purposes and objectives for which funds are required,
the costs of the programmes proposed for achieving
those objectives, and quantitative data measuring the
accomplishments and work performed under
programme.
 It is a technique of presenting budgets for costs and
revenues in terms of functions, programmes and
activities and correlating the physical and financial
aspects of the individual items comprising the budget.

STEPS OF PERFORMANCE BUDGETING
 Establishment of performance targets

 Establishment of responsibility centre
 Estimating financial requirements
 Comparison of the actual with the budgeted

performance
 Reporting and action

ZERO BASE BUDGETING
 The „Zero-Base‟ refers to a „nil-budget‟ as the starting
point; as activity is budgeted, costs are objectively
budgeted.
 It starts with the assumption that the budget for the next
period is „zero‟. Therefore, a long-term demand for a
function, process, or project is not justified for each rupee.
 "Zero-base budgeting is a process of reviewing, analyzing
and evaluating each demand to be integrated into the
budget, so that its justification for including it in or
excluding it from the budget can be determined."

PROCEDURE FOR ZERO BASE BUDGETING
 Determination of objective
 Degree at the ZBB is to be introduced
 Growth of decision units
 Growth of decision packages
 Assessment and grading of decision packages
 Allotment of money through budgets

ADVANTAGES OF ZBB
 ZBB rejects the attitude of accepting the current position in
support of an attitude of inquiring and testing each item of
budget.
 It helps to improve in financial planning and management
information system through various techniques.
 It is an educational process and can promote a management
team of talented and skillful people who tend to promptly
respond to changes in the business environment.
 It facilities recognition of inefficient and unnecessary
activities and avoid wasteful expenditure.
 Cost behavior patterns are more closely examined.
 Management has better elasticity in reallocating funds for
optimum utilization of the funds.

LIMITATIONS OF ZBB
 ZBB caries huge cost of preparing budget every year, so that it
is an expensive method.
 It also requires greater volume of paper work, and so
sometimes it becomes a tedious job.
 In ZBB there is a danger of emphasizing short-term benefits at
the expense of long term ones.
 It has a tendency to regard any activity not forcing and
sanctioned in the most recent ZBB has illegitimate.
 This is not a new method for evaluating various alternatives,
and cost-benefit analysis.
 The psychological effects can also not be ignored. It holds out
high hopes as a modern technique, claiming to raise the
profitability and efficiency of the business.

BUDGET REPORTS
 Ascertaining budget in itself is of no use unless

there is a constant flow of budget reports showing
assessment of actual and budget figures.
 It should be prepared at regular intervals such as
showing every month the results of the difference
between actual and budgeting figure.
 Reports should also disclose if variances are
favourable or unfavourable.

ESSENTIALS OF BUDGET REPORT
 The budget reports should be simple and
understandable to the concerned person.
 The report should be presented on or before time.
 The report should be precise but over-accuracy
should not be at the cost of clarity.
 The principle of exemption should be utilized
wherever possible.
 It should contain only necessary information
according to the need of the concerned person.

PRACTICAL PROBLEMS

PROBLEM – I
Prepare a Flexible budget for overheads on the basis of the following data.
Ascertain the overhead rates at 50% and 60% capacity.
Variable overheads: At 60% capacity(Rs)

Indirect Material 6,000
Labour 18,000
Semi-variable overheads:
Electricity: 30,000
40% Fixed
60% variable
Repairs:
80% fixed 3,000
20% Variable
Fixed overheads:
Depreciation 16,500
Insurance 4,500
Salaries 15,000
Total overheads 93,000
Estimated direct labour hours 1,86,000
SOLUTION – I
Flexible Budget
Items Capacity
50% 60%
Variable overheads: Rs. Rs.
Material 5,000 6,000
Labour 15,000 18,000
Semi-variable
Electricity 27,000 30,000
Repairs 2,900 3,000
Fixed overheads:
Deprecation 16,500 16,500
Insurance 4500 4500
Salaries 15,000 15,000
Total Overheads 85,900 93,000
Estimated direct labour hours 1,55,000 1,86,000
Overhead Rate 0.55 0.50

WORKING NOTE
Electricity
At 50% capacity = 18,000 * 50
60
= Rs. 15,000
Rs. 12,000 + Rs. 15,000 = Rs. 27,000
60% capacity = Rs 18,000 + Rs. 12,000 = Rs. 30,000
Repairs
For 60% capacity = Rs.600
=Rs. 2400 + Rs.600 =Rs.3,000
At 50% capacity : = 600/60 * 50
= RS. 500
=Rs.2400 + 500
=Rs.2,900

PROBLEM – II
Prepare a flexible budget for overheads on the basis of the following data.
Ascertain the overhead rates at 60% and 70% capacity.
Variable overheads: At 60% capacity(Rs)

Material 6,000
Labour 18,000
Semi-variable overheads:
Electricity: 30,000
40% Fixed
60% variable
Repairs:
80% fixed 3,000
20% Variable 3,000
Fixed overheads:
Depreciation 16,500
Insurance 4,500
Salaries 15,000
Total overheads 93,000
Estimated direct labour hours 1,86,000
SOLUTION – II
Flexible Budget
Items Capacity
60% 70%
Variable overheads: Rs. Rs.
Material 6,000 7,000
Labour 18,000 21,000
Semi-variable
Electricity 30,000 33,000
Repairs 3,000 3,100
Fixed overheads:
Deprecation 16,500 16,500
Insurance 4,500 4,500
Salaries 15,000 15,000
Total Overheads 93,000 1,00,100
Estimated direct labour hours 1,86,000 2,17,000
Overhead Rate 0.50 0.46

WORKING NOTE
Electricity
At 60% capacity Fixed= 40/100 *32,000 = 12,000
Variable = 60/100 * 30,000= 18,000
Repairs
For 60% capacity Fixed 80/100 * 3,000 = Rs.2400
Variable = 20/100 * 3,000 = Rs. 600
=Rs. 2400 + Rs.600 =Rs.3,000
Electricity Exp.
At 70% capacity: Fixed = 40/100 * 30,000 = Rs. 12,000
Variable = 18,000/60 *70 = Rs. 21,000
Total Rs. =33,000

PROBLEM – III
The expenses budgeted for production of 1,000 units in a factory are
furnished below:
Particulars Per Unit Rs.

Material Cost 700
Labour Cost 250
Variable overheads 200
Selling expenses(20% fixed) 130
Administrative expenses(Rs. 2,00,000) 200
Total Cost 1,480
Prepare a budget for production of 600 units and 800 units

assuming administrative expenses are rigid for all level of production.

SOLUTION – III
Flexible Budget
Particulars For 600 units For 800 units
Per unit Rs. Total Rs. Per unit Rs. Total Rs.
Variable Cost:
Materials 700 4,20,000 700
Labour 250 1,50,000 250 2,00,000
Variable overheads 200 1,20,000 200 1,60,000
(A) 1,150 6,90,000 1,150 9,20,000
Semi variable cost:
Variable selling expenses 104 62,400 104 83,200
Fixed selling expenses 43.33 26,000 32.50 26,000
(B) 147.33 88,400 136.50 1,09,200
Fixed cost:
Administrative expenses 333.33 2,00,000 250.00 2,00,000
Total Cost(A+B+C) 1,630.66 9,78,400 1,536.50 12,29,200

PROBLEM – IV
Saurashtra Co. Ltd. wishes to arrange overdraft facilities with its bankers from the period
August to October 2010 when it will be manufacturing mostly for stock. Prepare a cash budget
for the above period from the following data given below:
Month Sales Purchases Wages (Rs.) Mfg. Exp. Office Exp. Selling Exp.
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
June 1,80,000 1,24,800 12,000 3,000 2,000 2,000
July 1,92,000 1,44,000 14,000 4,000 1,000 4,000
August 1,08,000 2,43,000 11,000 3,000 1,500 2,000
September 1,74,000 2,46,000 12,000 4,500 2,000 5,000
October 1,26,000 2,68,000 15,000 5,000 2,500 4,000
November 1,40,000 2,80,000 17,000 5,500 3,000 4,500
December 1,60,000 3,00,000 18,000 6,000 3,000 5,000
Additional Information:
•Cash on hand 1-08-2010 Rs.25,000.
•50% of credit sales are realized in the month following the sale and the remaining 50% in
the second month following. Creditors are paid in the month following the month of purchase.
•Lag in payment of manufacturing expenses half month.
•Lag in payment of other expenses one month.
SOLUTION – IV
Cash Budget
Particulars August (Rs.) September (Rs.) October (Rs.)
Receipts:
Opening balance 25,000 44,500 (66,750)
Sales 1,86,000 1,50,000 1,41,000
Total Receipts(A) 2,11,000 1,94,500 74,250
Payments:
Purchases 1,44,000 2,43,000 2,46,000
Wages 14,000 11,000 12,000
Mfg. Exp. 3,500 3,750 4,750
Office Exp. 1,000 1,500 2,000
Selling Exp, 4,000 2,000 5,000
Total payments(B) 1,66,500 2,61,250 2,69,750
Closing Balance(A-B) 44,500 (66,750) (1,95,500)

PROBLEM – V
S. K. Brothers wish to approach the bankers for temporary overdraft facility for the period
from October 2010 to December 2010. During the period of these period of these three
months, the firm will be manufacturing mostly for stock . You are required to prepare a
cash budget for the above period .
Month Sales (Rs.) Purchases (Rs.) Wages (Rs.)
August 3,60,000 2,49,600 24,000

September 3,84,000 2,88,000 28,000
October 2,16,000 4,86,000 22,000
November 3,48,000 4,92,000 20,000
December 2,52,000 5,36,000 30,000
1. 50% of credit sales are realized in the month following the sales and
remaining 50% in the second following.
2. Creditors are paid in the month following the month of purchase
3. Estimated cash as on 1-10-2010 is Rs.50,000.
SOLUTION – V
Cash Budget
Particulars October (Rs.) November(Rs.) December(Rs.)
Receipts:
Opening balance 50,000 1,12,000 (94,000)
Collection from 3,72,000 3,00,000 2,82,000
Debtors
Total Receipts(A) 4,22,000 4,12,000 1,88,000

Payments:
Payments to Creditors 2,88,000 4,86,000 4,92,000
Wages 22,000 20,000 30,000

Total payments(B) 3,10,000 5,06000 5,22,000
Closing Balance(A-B) 1,12,000 (94,000) (3,34,000)
PROBLEM – VI
Prepare a cash Budget of R.M.C. LTD. for April, May and June 2012:
Months Sales(Rs.) Purchases(Rs.) Wages(Rs.) Expenses(Rs.)

Jan.(Actual) 80,000 45,000 20,000 5,000
Feb.(Actual) 80,000 40,000 18,000 6,000
March (Actual) 75,000 42,000 22,000 6,000
April (Budget) 90,000 50,000 24,000 7,000
May(Budget) 85,000 45,000 20,000 6,000
June(Budget) 80,000 35,000 18,000 5,000
Additional Information:
•10% of the purchases and 20% of sales are for cash.
•The average collection period of the company is ½ month and the credit
purchases are paid regularly after one month.
•Wages are paid half monthly and the rent of Rs. 500 included in expenses
is paid monthly other expenses are paid after one month lag.
•Cash balance on April 1,2012 may be assumed to be Rs.15,000

SOLUTION – VI
Cash Budget
Particulars October (Rs.) November(Rs.) December(Rs.)
Receipts
Opening Balance 15,000 27,200 35,700
Cash Sales 18,000 17,000 16,000
Collection from 66,000 70,000 66,000
Debtors
Total Receipts(A) 99,000 1,14,200 1,17,700
Payments
Cash Purchases 5,000 4,500 3,500
Payment to 37,800 45,000 40,500
creditors
Wages 23,000 22,000 19,000
Rent 500 500 500
Other Exp. 5,500 6,500 5,500
Total Payments(B) 71,800 78,500 69,000
Closing balance 27,200 35,700 48,700

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UNIT – V

Budgets & Budgetary

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 It reviews the present situation and pinpoints

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

• Sales • Fixed • Long term

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 The sales budget is an  The production budget is

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 Direct material budget is  In this budget, the main

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 Labour cost contributes a  The production overhead

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 This budget is prepared for  This budget is prepared for

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 It is prepared on the basis of  It is prepared on the basis of

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 A kind of short term budget which is prepared for

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 Provision of excess funds

 Provisions for acquiring funds

 Profitable usage of cash

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 Receipt and payment

 Budgeted balance sheet method

 Working capital differential method

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 Establishment of performance targets

 Estimating financial requirements

 Comparison of the actual with the budgeted

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 Growth of decision units

 Growth of decision packages

 Assessment and grading of decision packages

 Allotment of money through budgets

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

 Ascertaining budget in itself is of no use unless

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.

Variable overheads: At 60% capacity(Rs)

Dr. Manoj Shah, Principal Investigator, NMEICT, MHRD Delhi.