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Budgetry Control Study.. Synopsis

SYNOPSIS ON BUDGETARY CONTROL AT RATIONALE OF THE STUDY According to the J. Betty “system which uses Budgets as means of planning and controlling all aspects of producing and/selling commodities and services” “ Budgetary control is the system of controlling costs which includes the preparation of Budgets , co-coordinating the department and establishing the responsibilities, comparing the actual performance with the Budgeted and acting up in the results to achieve the maximum profitability. ” It brings in efficiency and economy by promoting cost consciousness among the employees.

Provides a basis for performance appraisal (variance analysis). A budget is basically a yardstick against which actual performance is was unread assessed. Control is provided by comparisons of actual results against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and non-controllable factors. INTRODUCTION According to ICMA, England, a Budgets is “financial and/or quantitative statement, prepared and approved prior to be defined period of time, of the policy to be pursed during the period for the purpose of attaining a given objective. It is also defined as “a blue print of protected plan of a action of a business for a definite period of time. ” According to the brown and Howard “ Budgetary control is the system of controlling costs which includes the preparation of Budgets , co-coordinating the department and establishing the responsibilities, comparing the actual performance with the Budgeted and acting up in the results to achieve the maximum profitability. ” According to the j. Betty ”system which uses Budgets as means of planning and controlling all aspects of producing and/selling commodities and services” IMPORTANCE OF THE STUDY

Budget is essential in every walk of our life –national, domestic and business. A budget is prepared is to have effective utilization of funds and for the realization of objective as effective utilization of funds and for the realization of objective as efficiently as possible. Budgeting is a powerful tool to the management for performing its functions i. e. , efficiently. For efficient and effective and budgetary control provides a set of basic techniques for planning and control are two highly essential functions. Budget and budgetary control provides a set of basic techniques for planning and control.

A budget fixes a target in terms of rupees or quantities against which the actual performance is measured. A budget is closely related to both the management function as well as the accounting function of an organization. NEED FOR THE STUDY It is an effective method of controlling the activities of various departments of a business unit. It fixed targets and the various departments have to efficiently to reach the targets. It secures proper co ordination among the activities of various departments. It helps the management to fix up responsibility in case the performance is below expectation.

It helps the management to reduce wasteful expenditure. This leads to reduction in the cost of production. OBJECTIVES OF THE STUDY 1. To offer comments on the annual budgeted estimations on the accounts of a mother dairy for the users of the financial statements to access the ability of the mother dairy to generate cash and cash equivalents to serve the needs of the organization. 2. To derive the working experience of producing budgetary statements. 3. To offer limited directions cash management group to steer the organization to a cash surplus company.

SCOPE OF THE STUDY: Mother dairy having the continuous growth every year several divisions, the study of budgetary control in this organization gives a fair idea on the cash management considering the major transaction of the firm. The budgetary estimations will be taken for the project study form the annual reports for the information. Several aspects of the firm will be considered for the study. RESEARCH METHODOLOGY A. Sources of the data There are mainly two important sources through which the whole data is collected. Primary Data

The primary data of the topic will be collected by personal interaction with the officials of the finance and accounting department and also from annuals of the company. The financial data relating to organization has been collected for the 5years. Secondary Data The data will be collected from the websites, books and all other relevant information or literary are taken as secondary source of data. The data thus collected will be arranged in a format. LIMITATIONS OF THE STUDY: •Only Mother Dairy, Hayatnagar, R. R. District is considered for the study.. •The opinions of the may be biased. •Time is one of the limiting factors.

EXPECTED CONTRIBUTION TOWARDS THE STUDY “Budgets are the individual objectives of a department etc where as budgeting may be said to be the act of budgets. Budgetary control embraces all this and in addition includes the science of planning the Budgets themselves and the utilization of such Budgets to efforts on overall management too! For the business planning and control. ” Thus, a budget is financial plan and budgetary control results from the administration of the financial plan. There is a dearth in academic literature especially in the field of dairy products budgeting; this Study contributes towards the study.

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