Ch 6 · Budgetary Control

5 concept points · 3 formulas · 4 exam-critical points.

📘 Core concepts

• 1Budget: financial/quantitative plan for a defined period.
• 2Types: functional (sales, production, cash), master budget (consolidates), fixed vs flexible.
• 3Zero-based budgeting (ZBB): each expense justified from scratch.
• 4Performance budgeting: links inputs to outputs.
• 5Budget Manual documents procedures; Budget Committee approves.