Budget, Budget Control and Budget Monitoring PDF

BUDGET, BUDGET CONTROL AND BUDGET MONITORING Mr. Kim John Sisic  LEARNING OBJECTIVES 1. To determine the steps in budget preparation. 2. To appreciate the objectives of budget control. 3. To describe monitoring instruments used in hospitality businesses. 4. To determine...

BUDGET, BUDGET CONTROL AND BUDGET MONITORING Mr. Kim John Sisic  LEARNING OBJECTIVES 1. To determine the steps in budget preparation. 2. To appreciate the objectives of budget control. 3. To describe monitoring instruments used in hospitality businesses. 4. To determine how to estimate manpower requirements in different situations.  Budget An estimate of future cost and revenue expressed in monetary term, covering a specific period of time. Helps in prioritizing your spending, identify wasteful expenditures, adapt quickly as your financial situation changes, and achieve your financial goals. BUDGETING CONTROL  Budget Control The exercise of control in the organization with the help of budgets. To ensure that planned performance as laid down in the budgets are being achieved. Types of Budget 1. Sales Budget 2. Production Budget 3. Capital Budget 4. Marketing Budget 5. Project Budget 6. Revenue Budget 7. Expenditure Budget Objective of Budgetary Control Planning It is the process to making a plan for something. Force management of all levels to plan for future activities. Objective of Budgetary Control Coordination The process of organizing people or group so that they work together properly and well. Coordinates C-operation so that objective is successfully achieved. Objective of Budgetary Control Communication Communication is the process by which we convey our thoughts, ideas, and emotion to the receiver. In which includes sender and receiver. Objective of Budgetary Control Motivation It is the internal and external factors that stimulate desire in the people to be interested and committed to job. Objective of Budgetary Control Control Ensuring the performance by continuous comparisons for corrective action. Principles of Good Budgetary Control Managerial responsibilites is clearly defined. Budgets must include plan of action. Performance must be monitored against the budget. Corrective action to be taken if performance differs. Essentials of Budgetary Control Establish budgets for each function and section of the organization. Continuous comparison of the actual performance with that budget. Taking suitable remedial action to achieve the desires objective. Revision of budgets in the light of changed circumstances. Process of Budget Control Preparation of various budget. Continuous comparison of actual performance with budgetary performance. Revision of budgets according to circumstances. ANY QUESTIONS? THANK YOU! - Mr. Kim John Sisic