By:Millennium Career Development AcademyView All 4 Courses
Budgeting is a tool that compels company to plan for the future, check the bottlenecks in achieving those plans. Budgeting comprises of operation budgets (sales, production, material, labor, overhead, non-manufacturing budgets that helps preparation of proforma Income statement. Budgeting also helps in designing supporting procedures, controls and analyzing variances and enacting responsibility accounting. Budgeting types like incremental budgeting, rolling budgets, activity budgets and zero-based budgets helps in cost control and in generation of reliable information.