Topic 3: Financial Planning and Control - Coggle Diagram
Topic 3: Financial Planning and Control
Definition of budget:
Budget is the overall plan of a business expressed in financial terms.
Purposes for budgeting:
Decide for the business
Exercise control over the business
Plan the business
The budgeting process
Act to control the event
Methods of Budgeting
budgets compiled on the basis of no change in policies or priorities; business as usual.
Zero based budget
starts budgeting with the priorities of an organization and allocates resources to those priorities according to their order of importance.
Comparing actual and budgeted
supportable by audit trailed documentary evidences such as invoices, receipts, staff time sheets etc.
approved budget for a given financial period.
sum of actual figures.
difference between total and budget.