Legends of

JHC SYBBI
09-10
Group 10
Presents
Budgetary Control
 Budget
 A plan expressed in quantitative and money
terms.
 Income, expenditure, and capital to be
employed.
 Entire organization, department, sales
territory, division, or for a significant activity.
 Can include non monetary as well as
monetary information in it.
 Budgetary control
 The establishment of budgets.
 Continuous comparison.
 Monetary, numerical or non
quantitative aspects. 
 Analysis.
 Benefits and applicability
 Base for coordination and integration of
various activities. 
 Measuring performance and comparing it
against budgeted figures.
 Conscious.
 Democratic way of managing and control.
 Some other terms
• The Budgeting process

• The Budget period

• Budget centers
 Limiting Factor
• The limiting factor is anything that limits the
activity of an entity.
• Examples of limiting factor:-
1 Cash
2 Raw materials
3 Skilled labor
4 Land
5 Equipment
• The budget that is prepared before all others.
• There is no point in preparing every budget.
 Case study
 Andy is a wholesaler of cricketing
equipment: Andy's territory covers much of
the South and East of England and his
business is sufficiently large that he needs
to consider each product line as its own
revenue centre.

 The weather will be hot and dry, and the

demand for cricket bats will be high from
June and for the rest of the season (until
early September). After September, Andy
will concentrate on his overseas business
(selling to agents in India, Australia, New
Zealand and South Africa).
 Andy’s
J J A S O N D
950 950 750 600 600 500 600
Sales (units)

Stocks at the end of any month is to be set at the

level of 100 bats plus 20% of the number of bats
scheduled to be sold in the following month.

Required
For the seven month period June to December,
prepare the stock and purchases budget and the
sales budget: the selling price per bat is œ20 and
the purchase price per bat is œ15.
 Purchases budget :
Cricket bats
J J A S O N D

290 290 250 220 220 200 220

Balance
b/d 950 910 720 600 580 520 640
Purchases
1240 1200 970 820 800 720 860

Balance c/d
290 250 220 220 200 220 260
Sales
950 950 750 600 600 500 600
 Bibliography
• www.business.fortunecity.com
• www.laynetworks.com
• www.tutor2u.net
• www.google.com
• www.ask.com

For case Study:

• www.kraft.co.uk
 Acknowledgement
• We would like to thank Professor Neha Shah for giving
us a topic such as Budgetary Control which opened our
minds and gave us an insight into how businesses
prepare their budgets when they have some basic ideas
of what they want to do. They prepare budgets to help
themselves achieve those ideas; and then once they
have done whatever it is that they wanted to do, they
check to see if they kept to their budget.
Budget controlled
By
ShafquatAzad 02
Ashish Bansal 03
Tejas Bartakke 05
Himansh Chaprod 09
Aamir Rangwala 46
Arjun Tandon 58