8-1
ACC2008 - INTRODUCTION TO
MANAGEMENT ACCOUNTING
• UNIT 4 – BUDGETING
, 8-2
Learning Objective 1
Understand why
organizations budget
and the processes they
use to create budgets.
, 8-3
The Basic Framework of Budgeting
A budget is a detailed quantitative plan for
acquiring and using financial and other resources
over a specified forthcoming time period.
1. The act of preparing a budget is called
budgeting.
2. The use of budgets to control an
organization’s activities is known
as budgetary control.
, 8-4
Difference Between Planning and
Control
Planning – Control –
involves developing involves the steps taken
objectives and by management to
preparing various increase the likelihood that
budgets to achieve the objectives set down
those objectives. while planning are attained
and that all parts of the
organization are working
together toward that goal.
ACC2008 - INTRODUCTION TO
MANAGEMENT ACCOUNTING
• UNIT 4 – BUDGETING
, 8-2
Learning Objective 1
Understand why
organizations budget
and the processes they
use to create budgets.
, 8-3
The Basic Framework of Budgeting
A budget is a detailed quantitative plan for
acquiring and using financial and other resources
over a specified forthcoming time period.
1. The act of preparing a budget is called
budgeting.
2. The use of budgets to control an
organization’s activities is known
as budgetary control.
, 8-4
Difference Between Planning and
Control
Planning – Control –
involves developing involves the steps taken
objectives and by management to
preparing various increase the likelihood that
budgets to achieve the objectives set down
those objectives. while planning are attained
and that all parts of the
organization are working
together toward that goal.
