Budgetary Control

PGDM – E Business (Trimester – 2)

Project submitted in partial fulfillment for the requirement of:

Management Accounting

Topic - A Study of Financial Statement of MRF

Under the guidance of:

Prof. L.N. Chopde

October 2010

Preface

The object of the study is to understand Budgetary Control systems. A brief introduction about budgetary control has been given along with the objectives, advantages and disadvantages which are important for the financial statements of a company. The elements of financial study have been explained.

The project also comprises study of budgetary control system of MRF company.

This project discusses in brief the budgetary control and the techniques to calculate the budget of a company.

Acknowledgement

We would like to thank our Professor Chopde for giving us an opportunity for making this project.

Also we would like to offer our thanks to Mr. (CA) who contributed his valuable knowledge and time to help us prepare this project.

Executive Summary

The study on this project helped us understand the importance budgetary control in an organization. It also helped us understand the technicality of preparing a budgetary control statement and gave us exposure to the practical aspect and objective of budgetary control.

As most of the group members were not from accounting background, we faced some difficulties in understanding the technical concepts of cash flow. Also we faced some difficulties to get an appointment with the CA, who helped us tremendously in this project.

Despite of all the challenges faced by us, it was an incredible experience preparing this project, as we got acquainted to many new accounting concepts which could be of great importance in the future.

Table of Content

Sr. No. Topic Page No.

1 Introduction to Budgetary Control:

i. Definition of Budget - 06