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Hi sir ..plz help me with the following..
Which of the following statements about programme planning and budgeting is correct?
1. programme planning and budgeting seeks to allocate resources to progrrames on the basis of anticipated profitability.
2. Programe planning and budgeting may measure outputs using non financial measures.
3. Programe planning and budgeting is usually carried out over a short time frame.Sir corect option is 2nd statement..bt how? Plz explain..i dont knw program planning..i have read that budgeting only focus on financial performanc
I am interested where you found mention of programme planning and budgeting, because it programme planning is not mentioned anywhere in the Paper F5 syllabus and has never been asked about (and would surprise me if it ever was asked about 🙂 )
Basically the programme planning is more long-term as to how to achieve long-term goals, and the budgets are more short-term (usually a year) designed to ‘fit-in’ with the long term plans.
More importantly for the exam, budgets are not simply financial (even though the final result is generally a budget Statement of profit or loss etc.) – they also comprise functional budgets. Management needs to make sure that the budgets (plans) tie in with the long-term plans – the long-term plans will not be just financial (they could include things such as improving quality) and so they would need measures covering those non-financial issues as well.
ok sir..bt a little bit confusion still abot budget defition. budget is a financial plan of action for a coming period..is this definition correct?…moreover sir ia it correct that standard costing only focus on financial performance? If it is true then sir budget are produced using standard costs etc..budgets should also b financial then..moreover i have never seen a budget for quality ..customer satisfaction
Yes you are correct.
It is not that we budget quality etc., but if our plan is to improve quality, then we need to incorporate the costs of doing this (and maybe the benefits) into the budget.
The budget itself is not a measure of performance, but we will need performance measures to see if we are achieving our objectives or not.
Q.1Hmm..it means that budgets cosist of financial as well as non financial plans?
Q.2..std costing is a process of comparing financial percormance only?
Q1 – yes of course – budgets are mainly financial plans.
Q2 – standard costing itself is not a way of measuring performance at all. We might use the standard costs (by comparing actual with them – so variance analysis) as a way of measuring financial performance, but the standard cost themselves do not measure performance. (We use standard costs for other things as well – for example, valuing inventories, making decision as to the selling price.)
smjh gya??? What language is that (because I don’t understand it – sorry 🙂 )
?..eee..sry..i told u that i got it..that was urdu language..m from the country of the great singer..”nusrat fateh ali khan”..
I have seen “nusrat fateh ali kahn” once in India 🙂
I thought he was fantastic (but I am afraid that I could not understand the words – I cannot speak Urdu 🙁 )
So I still do not understand ” smjh gya” – I hope that it was not insulting!!!
No no no sir ..how can u think that i can insult ..u r my ideal teachr..u can scold me even..m from pakistan..yes nusrat fateh ali khan was a great singer..he belongs to ” pakistan”..i said in urdu that “i got it”…..that is called in urdu..”samjh gya”..????
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