Syllabus B4

Budgets for control 5 / 6

Discuss the concept of the budget as a control system and the use of responsibility accounting and its importance in the construction of functional budgets that support the overall master budget.

- The use of budgets in planning and control e.g. rolling budgets and flexed budgets.
- The concepts of feedback and feed-forward control.
- Responsibility accounting and the link to controllable and uncontrollable costs.