ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The primary function of financial budgeting is to ensure core resources are available as needed to implement plans and achieve business goals. Advance planning of financials allows leadership to determine which initiatives and teams require more or fewer resources.

Detailed explanation-2: -Budgetary control is financial jargon for managing income and expenditure. In practice it means regularly comparing actual income or expenditure to planned income or expenditure to identify whether or not corrective action is required.

Detailed explanation-3: -Budget controlling compares costs, revenues and actual performance with the budget so that, if necessary, it can be reviewed and corrective measures can be applied.

Detailed explanation-4: -Budget has five different functions: Planning; Facilitating communication and coordination across the organisation; Allocation resources; Controlling profit and operations; Evaluating performance and providing incentives.