3.9 Budgeting

Content	Additional information
The need for budgeting in business organisations.	The purpose of budgeting.
The benefits and limitations of budgeting and budgetary control.	Benefits of budgeting and budgetary control will include generic benefits as well as the benefits of preparing specific budgets. The limitations of budgeting and budgetary control will include generic limitations as well as limitations relating to specific budgets. Benefits and limitations could include consideration of: zero-based budgeting incremental budgeting.
The use of accounting techniques in the preparation and analysis of budgets.	The budgets are: cash sales purchases production labour financial statements: income statement financial statements: statements of financial position.
How budgets are used in planning and control and the calculation and interpretation of variances.