Planning and Allocation of Resources
13 September 2012
In unit 8, trainee accounting technicians need to develop competence in the principles and purpose of budgetary control, planning and co-ordinating. This article considers the underpinning concepts of budgets and budgetary control.
Some definitions:
1.0 - Budget
"A plan expressed in money. It is prepared and approved prior to the budget period and may show income, expenditure, and the capital to be employed. It may be drawn up showing incremental effects on former budgeted or actual figures, or be compiled by zero-based budgeting." (CIMA)
1.1 - Budgetary Control
"The...