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    Types of Budget: Naseer Ahmed Commerce Department University O F Balochistan Quetta

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    Malik Naseer Awan
    This document discusses different types of budgets, including long term budgets that span 5-10 years, short term budgets that are 1-2 years, and current budgets that cover months and weeks. It also describes operating budgets like sales, production, and labor budgets, financial budgets like cash and capital expenditure budgets, and a master budget that integrates other functional budgets. Finally, it covers fixed budgets that are prepared in advance and don't adjust for changes, and flexible budgets that vary with activity levels and can adjust for unforeseen changes.

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    Types of Budget: Naseer Ahmed Commerce Department University O F Balochistan Quetta

    Uploaded by

    Malik Naseer Awan
    87 views8 pages
    This document discusses different types of budgets, including long term budgets that span 5-10 years, short term budgets that are 1-2 years, and current budgets that cover months and weeks. It also describes operating budgets like sales, production, and labor budgets, financial budgets like cash and capital expenditure budgets, and a master budget that integrates other functional budgets. Finally, it covers fixed budgets that are prepared in advance and don't adjust for changes, and flexible budgets that vary with activity levels and can adjust for unforeseen changes.

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    Types of budgets

    Original Title

    Budgets

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    This document discusses different types of budgets, including long term budgets that span 5-10 years, short term budgets that are 1-2 years, and current budgets that cover months and weeks. It also describes operating budgets like sales, production, and labor budgets, financial budgets like cash and capital expenditure budgets, and a master budget that integrates other functional budgets. Finally, it covers fixed budgets that are prepared in advance and don't adjust for changes, and flexible budgets that vary with activity levels and can adjust for unforeseen changes.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    87 views8 pages

    Types of Budget: Naseer Ahmed Commerce Department University O F Balochistan Quetta

    Uploaded by

    Malik Naseer Awan
    This document discusses different types of budgets, including long term budgets that span 5-10 years, short term budgets that are 1-2 years, and current budgets that cover months and weeks. It also describes operating budgets like sales, production, and labor budgets, financial budgets like cash and capital expenditure budgets, and a master budget that integrates other functional budgets. Finally, it covers fixed budgets that are prepared in advance and don't adjust for changes, and flexible budgets that vary with activity levels and can adjust for unforeseen changes.

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    Types of

    Budget
    NASEER AHMED
    COMMERCE DEPARTMENT UNIVERSITY O F BALOCHISTAN QUETTA.

    Budgets

    Nature
    Time
    .Long Term
    .Short term
    . Current
    Budget

    Functions
    .Operating
    .Financial
    .Master

    Flexibility
    .Fixed
    . Flexible

    Time nature

    Long term

    5-10 years,

    Top level management,

    Used by those industries where gestation(dev. period)


    period is long,

    Mostly done in R&D, long term finances etc.

    Short term

    1-2 yrs,

    Monetary nature

    Industries like Cotton, Textiles uses the short term budgets

    Current Budget

    Months & weeks,

    Current activities,

    On the basis of Functions-Operating

    Sales Budget

    Production Budget

    Production Cost Budget

    Purchase Budget

    Raw material Budget

    Labor Budget

    Plant Utilization Budget

    Manufacturing/Works Overhead Budget,

    Administrative & Selling Expenses Budget

    Program Budget

    Responsibility Budget

    Contd..

    Program Budget

    Expected revenues

    Product/project are considered as major program,

    Locate where to reduce the cost & increase revenues,

    Determine the imbalances & inadequacies

    Corrective action can be taken

    Responsibility

    Construct the responsibility areas like Cost/Expenses


    centre, Profit centre, Investment Centre,

    Plans in terms of person,

    Control device

    Functions - Financial

    Cash Budget

    Working Capital

    Capital Expenditure

    Income Statement

    Statement of Retained Earning Budget,

    Budgeted Balance Sheet or Position statement


    Budget.

    Function-Master

    Various functional budget are integrated

    Summary budget incorporating its functional


    budget,

    Prepared by budget officer,

    Used to coordinate among the various


    functional department.

    Control device

    Flexibility

    Fixed

    Units are overlooked

    Given level of activity

    Before the beginning of FY

    Anticipated changes are not adjusted,

    Suitable under static condition,

    Useful when sales, expenses & costs can be forecasted with


    great accuracy.

    Flexible

    Consists of series of budgets

    Varies with the level of activity attained.

    Prepared after considering the unforeseen changes,

    Difference between fixed, semi-fixed & variable cost.

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