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Sir, I am a bit confused with the term budgetary system and budgeting process.
are there actually the same meaning?
as I read the BPP textbook I found out that sometime they mention budgetary system, while sometime they mention budgeting process.What are the type of budgeting process?
Although I know it would not come out in ACCA exam, I hope to have an understanding on it.
Thanks
Strictly, the budgetary system is the type of budget that is being prepared (e.g. a rolling budget, or incremental budget, or zero based budget – I explain what these are in my free lectures).
The budgeting process is how the preparation is organised e.g. who is responsible for which part of it, who is coordinating it all and approving it all.Do watch my free lectures on budgeting. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
Is that means the planning and control cycle is considered as the budgeting process? (as to page 220 BPP Textbook 2016/2017)
(first we need identify objectives, followed by identify potential strategies, evaluate strategies, identify possible course of action)In summary,
Budgeting system is we use what method to prepared the budget.
Budgeting process is how we are going to apply the method of budgeting (zero-based, incremental) into practical.
The above is what I understand from sir your explaination above.
Is it correct?
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