BUDGETING| FORECASTING|COMMERCIAL STUDIES |CLASS 10|MEANING |UTILITY|BACKBENCHERS ACADEMY MAYANK SIR

Budgeting Meaning and utility of budgeting;
Comparison between budgeting and forecasting;
Types of budgets:
Sales, Production, Cash, Purchase and Master – Meaning only.

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Q1. Define Budgeting.
A1. A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis.
It is an estimate of needs and expected results prepared in advance of the period to which it relates.


Budgets can be made for a person, a group of people, a business, a government, or just about anything else that makes and spends money.

Q2. What are the main utilities of Budget?
A2. Code - SHED SSC.

The main utilities of Budgeting are:-
1. Sound Planning: Budget makes planning purposeful and precise. Objectives and programmes are expressed in physical or monetary units in budgets. So it bounds the managers to think about the future.
2. Higher Efficiency: Budgets bring efficiency and economy to the working of a business firm. They help management in obtaining the most profitable combination of different factors of production.
3. Effective control: Budgets are an important tool of managerial control. Uses of budgets for evaluation and control of performance is known as ‘Budgetary control’.
4. Delegation of Authority: The delegation of authority refers to the division of labor and decision-making responsibility to an individual that reports to a leader or manager. It is the organizational process of a manager dividing their own work among all their people. It permits participation of employees at all level.


5. Sense of responsibility: Budgets helps to establish divisional and departmental responsibility. They prevent “buck-passing” and create a sense of responsibility among managers.
6. Source of Motivation: Budgets represents the ‘milestone’ to be reached. They tell people what is expected. Budget becomes the goals or targets to be attained.
7. Coordination: Budgets force executives to think as a group. Budgets are prepared in consultation with one another.


Q3. What is Forecasting?
A3. Forecasting is the process of making predictions based on past and present data. Later these can be compared against what happens. For example, a company might estimate their revenue in the next year, then compare it against the actual results.
In other words, A forecast is merely an estimate of what is likely to happen. It is a statement of probable events.
The video is uploaded by one of the most promising and upcoming institute of India, BACKBENCHERS ACADEMY.
The chief educator and mentor of the academy is MAYANK SIR.
Mayank Sir is a passionate teacher and believes in what Dr. APJ Abdul Kalam said, that the best brains of the country sit on the last benches. Mayank Sir decided that he will take extra care in nourishing the hidden talents of all the students of the classroom, including those who sit on the last benches because they become disoriented. Hence he started his Institute by the name " BACKBENCHERS ACADEMY".

His dream is to open his branches throughout India, integrate them with the help of Technology, and impart knowledge with a passion to everyone. He believes in what he says, that
EDUCATION IS NOT WHAT GIVES YOU INFORMATION,
EDUCATION IS THAT WHICH GIVES YOU AN IDEA.


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