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Concepts · CA Intermediate/Cost & Management Accounting

Cost & Management Accounting

Ch 6 · Budgetary Control

5 concept points · 3 formulas · 4 exam-critical points.

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Concept
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Chart Summary
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Formula Sheet
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Important Points

⭐ Important points (exam-critical)

  • ⭐Principal/Key Budget Factor: most binding (often sales, sometimes raw material/capacity).
  • ⭐Rolling budget: continuously updated (add new month, drop oldest).
  • ⭐Performance reports compare actual with budget — feedback control.
  • ⭐Behavioural aspects: participation, slack, dysfunctional behaviour.

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