A Study on Budgeting and Budgeting Control

Research Design:-

Company can reduce costs through various means; one of the

effective means is budgetary control. In fact budgets act as planning as well
as controlling tools, Analyzing variances from budget is useful to the
monetary performance. In fact budgetary control is the most important
internal control techniques.

It is a proposed to study in detail the entire process of integrated profit

planning and its two components viz., budgeting and budgetary control
which is particular reference to Weinerberger Pvt limited.

Importance of the Study:

Budgeting as a tool for cost control attracted certain debate on the subject. It
assists delegation of authority. It helps careful study of the problems in
advance before taking decision.

Statement of Problem:

Planning is required to help assure the survival and growth of the

company. The management has to clarify its objectives as to what action
must be taken when, by whom and at what cost to achieve the desired
objectives.

Weinerberger produces and supplies high quality bricks and tiles presently
only in Bangalore. It follows budgeting as a mean of cost control and
performance monitoring. This project tries to analyze the effectiveness of
budgetary control at Winerberger and evaluates budgetary system as a
whole.

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Objectives of the study:

1. To understand the budgeting technique implemented in a

manufacturing firm
2. To analyze the budgeting control system and procedures in
Winerberger.
3. To compare the actual performance with that of the budgeted
performance.

Methodology:

As the application of budgeting and budgetary control system has great

relevance to the organization for both design and implementation with
reference to the responsibility centers. Theoretical background is to be
applied to the company by the review of literature connected with the
subject.

Method of data collection:

Data comprises of information obtained from the annual reports,

budgets, and other financial statements maintained by the company.

Plan of analysis & evaluation:

The technique used for analysis is trend analysis. Based on the study of the
practices of the corporation and the theoretical background of the subject, a
critical review of the budgeting and budgetary control practices over the
period of four quarters will be attempted. The budget will be studied along

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 A Study on Budgeting and Budgeting Control

with the figures achieved at the budget period. The variation will be studied
and causes analyzed suggestion for improvement will be made.

Limitations of the study:

The success of the project depends on the data made available. It is difficult
to rely on the data collected primarily. As the company is big the data budget
is very vast. Study of each project of capital budget is not possible within the
period permission given for the project work. However, whatever the data
available is considered thoroughly and examined for the study.

Also only administrative budget was only considered for the study even as
the company prepares a revenue budget for its manufacturing unit.

Another limitation of the study is that it analyses the data for only the month
of April for 2008, 2009, 2010.

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