Techniques/Process of Budgeting

1. Formulation of business policies i.e purchase policy, production policy, inventry/logistics policy, sales policy & finance/money policy.

2. Drafting budget forecast i.e sales forecast, purchase forecast, capital expenditure/imvestment forecast, research and development expense forecast.

3. Budgets alternative plans and selection one best among them.

4. Coordination among various departmrnt budgets.

5. Budget committee formulates master budget.

6. Approval of master budget in the meeting of the shareholders/owners.


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