Budgets allow a business to create a financial roadmap by setting goals and working to achieve those goals. A budget is an instrument of management used as an aid in the planning, programming and control of business activity. In other words, a budget is a document that management makes to estimate the revenues and expenses for an upcoming period based on their goals for the business. It is based upon past statistical data and it predicts the estimated labour, sales, production and other management requirements for future. Budgetary control makes use of budgets for planning and controlling all aspects of producing and/ or selling products or services. It attempts to show the plans in financial terms. Budgetary control is the planning in advance of the various functions of a business so that the business can be controlled. It relates, expenditure to a section or department who incurs the expenditure, so that the actual expenses can be compared with the budgeted ones, thus providing a convenient method of control. The presentation gives better understanding on the topic.

Abhijith S

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