Managerial Accounting Approaches for Budget Planning

Managerial accounting plays a crucial role in budget planning and control within organizations. This content explores the classification of budgets, the budgeting process, different types of budgets, and the basis of categorizing budgets. It covers various aspects such as short-term vs. long-term budgets, flexible vs. fixed budgets, and functional budgets like sales, production, materials, labor, cash, capital, overhead, and research & development. Understanding these concepts is essential for effective financial management and decision-making.

• Managerial Accounting
• Budget Planning
• Classification of Budgets
• Financial Management
• Functional Budgets

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Uploaded on Mar 20, 2025 | 0 Views

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1. ACCOUNTING FOR PLANNING AND CONTROL PART IV DR.ANIL PRATAP SINGH HEAD DEPARTMENT OF COMMERCE HARISH CHANDRA POST GRADUATE COLLEGE ,VARANASI ANIL PRATAP SINGH 3/20/2025 1

2. CLASSIFICATION OF BUDGETS Managerial accounting approaches a company's financial situation in an operational way, giving information in a manner that supports managers in planning and control procedures. Various budget formats in managerial accounting influence how a manager forecasts department activity and how he addresses progress or shortfall to meet goals. Companies may use several types of managerial budgets concurrently. Cntd 2 ANIL PRATAP SINGH 3/20/2025

3. Budgeting process is chronological in nature, and consists of many budgets that are roughly classified according to methods and techniques of an organization in generating and spending its money. Different budgets are used for different applications. Some of these mentioned budgets deal with income coming from dividends, sales and interest. Consequently, other budgets give details of sources of expenditures like labor, selling costs, purchases, and factory costs. Some unique types of budgets are chiefly concerned with investments and forecast for company productivity and performance. These budgets are classified according to their usage. ANIL PRATAP SINGH 3/20/2025 3

4. CLASSIFICATION OF BUDGETS Current On the basis of time Short Term Long Term ANIL PRATAP SINGH 3/20/2025 4

5. On the basis of fIexibility Flexible Budget Fixed Budget ANIL PRATAP SINGH 3/20/2025 5

6. Sales Budget Production Budget Materials Budget On the basis of Functions Labour Budget Cash Budget Capital Budget Overhead Budget Research & Development Budget ANIL PRATAP SINGH 3/20/2025 6

7. Master Budget Other Budget Supplementar y Budget Zero Base Budget ANIL PRATAP SINGH 3/20/2025 7

8. THEEND BE POSITIVE ANIL PRATAP SINGH 3/20/2025 8 This Photo by Unknown Author is licensed under CC BY-NC-ND