Ans. Budget Manual : Budget manual is defined as a document which sets outstanding instructions, the responsibility of the persons engaged in, and the procedures, forms and records relating to the preparation and use of budgets. Thus budget manual is a booklet of budget policies which lays down the details of the organisational set up with duties and responsibilities of executives including the budget committee and budget officer and procedures to be followed for developing budget in respect of various activities. The following are some of the important matters dealt with in the budget manual:
a)
The dates by which preliminary forecasts and plans are to be submitted.
b)
The forms in which these are to be submitted and the person to whom these are
to be forwarded.
c)
The important factors that must be considered for each forecast or plan
d)
The categorisation of expenses, e.g., variable and fixed, and the manner in
which each category is to be estimated and dealt with.
e)
The manner of scrutiny and the personnel to carry it out.
f)
The matter which must be settled only with the consent of the managing
director, departmental manager, etc.
g)
The finalisation of the functional budgets and their compilation into the
Master Budget.
h)
The form in which the various reports are to be made out, their periodicity and
dates, the persons to whom these and their copies are to be sent.
i)
The reporting of the remedial actions.
j)
The manner in which budgets, after acceptance and issuance, are to be revised
or amended, and
k)
The matters to be included in budgets, on which action may be taken only with
the approval of top management.
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