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% Document Info
\author{keersri05}
\pdfinfo{
  /Title (costing.pdf)
  /Creator (Cheatography)
  /Author (keersri05)
  /Subject (Costing Cheat Sheet)
}

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\noindent
\begin{multicols}{3}
\begin{tabulary}{5.8cm}{C}
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    \vspace{-7pt}
    {\parbox{\dimexpr\textwidth-2\fboxsep\relax}{\noindent
        \hspace*{-6pt}\includegraphics[width=5.8cm]{/web/www.cheatography.com/public/images/cheatography_logo.pdf}}
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\begin{tabulary}{11cm}{L}
    \vspace{-2pt}\large{\bf{\textcolor{DarkBackground}{\textrm{Costing Cheat Sheet}}}} \\
    \normalsize{by \textcolor{DarkBackground}{keersri05} via \textcolor{DarkBackground}{\uline{cheatography.com/217923/cs/48568/}}}
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\noindent
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  \mymulticolumn{2}{p{5.377cm}}{\bf\textcolor{white}{Cheatographer}}  \\
  \vspace{-2pt}keersri05 \\
  \uline{cheatography.com/keersri05} \\
  \end{tabulary}
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  \mymulticolumn{1}{p{5.377cm}}{\bf\textcolor{white}{Cheat Sheet}}  \\
   \vspace{-2pt}Not Yet Published.\\
   Updated 5th November, 2026.\\
   Page {\thepage} of \pageref{LastPage}.
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  \mymulticolumn{1}{p{5.377cm}}{\bf\textcolor{white}{Sponsor}}  \\
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  \vspace{-5pt}
  %\includegraphics[width=48px,height=48px]{dave.jpeg}
  Measure your website readability!\\
  www.readability-score.com
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\begin{document}
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\begin{multicols*}{3}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Budgeting and Budgetary Control}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{} \tn 
% Row Count 0 (+ 0)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Budgeting: Basics}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: {\bf{Quantitative plan}} of {\bf{future}} activities and objectives for a specified period.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: Planning, coordination, resource allocation and performance targets.} \tn 
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\mymulticolumn{1}{x{5.377cm}}{Objectives: {\bf{Planning → Coordination → Communication → Resource allocation → Cost control → Performance evaluation → Corrective action}}.} \tn 
% Row Count 7 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major advantages: Better planning, cost control, efficiency, accountability and coordination.} \tn 
% Row Count 9 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major limitations: Estimates may be inaccurate; preparation is time-consuming; rigidity and budgetary slack may arise.} \tn 
% Row Count 12 (+ 3)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Budgeting = preparation of plans; Budgetary Control = comparison, variance analysis and corrective action.} \tn 
% Row Count 15 (+ 3)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Budget = planned target; Forecast = expected future outcome.} \tn 
% Row Count 17 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Budgetary Control Process}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: System of controlling operations through budgets, {\bf{actual-performance comparison}} and {\bf{corrective action}}.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key process: {\bf{Objectives → Budget Centres → Key Budget Factor → Budget Policies → Functional Budgets → Master Budget → Approval → Actual Results → Variance Analysis → Corrective Action}}.} \tn 
% Row Count 8 (+ 5)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Budget Centre}}: Organisational unit for which a separate budget is prepared.} \tn 
% Row Count 10 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Key Budget Factor}}: Limiting factor governing activity; may be sales, material, labour or capacity.} \tn 
% Row Count 13 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Management by Exception}}: Focus on significant deviations.} \tn 
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% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Prerequisites: Management support, clear responsibilities, realistic budgets, reliable accounting, coordination and timely reporting.} \tn 
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% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Budgeting prepares the plan; budgetary control monitors and acts on performance.} \tn 
% Row Count 20 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Budget Committee and Budget Manual}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Budget Committee}}: Group of senior executives responsible for overall coordination, review and supervision of budgeting.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Composition: CEO/MD, Finance Director, Budget Officer and departmental heads.} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Main functions: {\bf{Budget policies → Coordination → Review → Conflict resolution → Monitoring → Revision}}.} \tn 
% Row Count 8 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Budget Officer}}: Administrative and technical coordinator who collects, checks and consolidates budget estimates.} \tn 
% Row Count 11 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Budget Manual}}: Written document containing budgeting procedures, responsibilities, formats, timetables and reporting guidelines.} \tn 
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% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major distinction: Committee = People who oversee budgeting; Manual = Document explaining how budgeting is conducted.} \tn 
% Row Count 17 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Fixed and Flexible Budgets}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Fixed Budget}}: Prepared for {\bf{one predetermined activity level}}; does not change with actual output.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Flexible Budget}}: {\bf{Adjusted}} according to {\bf{actual or expected activity levels}}.} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Main focus: Understanding how costs behave as activity changes.} \tn 
% Row Count 7 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major strength of flexible budgeting: Meaningful cost control and performance evaluation at different activity levels.} \tn 
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% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Requires reliable cost classification and more preparation.} \tn 
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% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Fixed = one activity level; Flexible = multiple activity levels.} \tn 
% Row Count 14 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Cost behaviour}}: \newline -{\bf{ Fixed}} → Total constant; per-unit cost decreases. \newline - {\bf{Variable}} → Total changes proportionately; per-unit cost constant. \newline - {\bf{Semi-variable}} → Contains fixed and variable components. \newline  \newline {\bf{Key formulas}}: \newline - Total variable cost = Variable cost per unit × Output. \newline - Total cost = Fixed cost + Variable cost. \newline - Semi-variable cost = {\bf{(a+bX)}}. \newline - {\bf{High-Low variable cost per unit = Change in cost ÷ Change in activity}}.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Functional Budgets}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: {\bf{Separate budgets}} prepared for {\bf{individual organisational functions}} and {\bf{consolidated into the Master Budget}}.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key sequence: {\bf{Sales → Production → Materials, Labour and Overheads → Master Budget}}.} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Main purpose: Coordination of departmental activities, resource planning and cost control.} \tn 
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% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key principle: Functional budgets are {\bf{interdependent}}; the output or estimates of one budget provide inputs for others.} \tn 
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% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Principal Budget Factor}}: The limiting factor governing operations. {\bf{Sales}} is commonly the starting point, but material availability, labour or production capacity may be the constraint.} \tn 
% Row Count 14 (+ 4)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Functional Budgets = Individual departmental plans; {\bf{Master Budget}} = Consolidated organisational plan.} \tn 
% Row Count 17 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Main types: \newline 1. {\bf{Sales Budget }}→ Expected sales quantity and revenue. \newline 2.{\bf{ Production Budget}} → Units to be manufactured. \newline 3.{\bf{ Material Budget}} → Materials required and purchases. \newline 4. {\bf{Labour Budget}} → Labour hours and labour cost. \newline 5. {\bf{Overhead Budget}} → Indirect production expenses.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Sales Budget}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: {\bf{Estimates expected sales quantity}} and revenue for a specified period.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: How much can the organisation sell, and at what price?} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Formula: {\bf{Sales Revenue = Budgeted Units × Selling Price per Unit}}.} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Methods: Market research, sales force composite, trend analysis, statistical methods, expert opinion and test marketing.} \tn 
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% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Provides the basis for production and other functional budgets.} \tn 
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% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major limitation: Accuracy depends on demand forecasts and market conditions.} \tn 
% Row Count 13 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Production Budget}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: {\bf{Estimates units to be manufactured}} to meet expected sales and desired inventory.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: How much should the organisation produce?} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Formula: {\bf{Production = Sales + Desired Closing Stock − Opening Stock}}.} \tn 
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% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key inputs: Sales forecast, opening inventory, desired closing inventory and production capacity.} \tn 
% Row Count 8 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Coordinates production, sales, inventory and resource requirements.} \tn 
% Row Count 10 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Depends on accurate sales forecasts and availability of production resources.} \tn 
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% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Sales Budget = Units expected to be sold; Production Budget = Units required to be manufactured.} \tn 
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% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Numerical trap: {\bf{Higher closing stock increases production; higher opening stock reduces production}}.} \tn 
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\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Material Budget}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Estimates raw material quantity and cost required for production and the purchases needed to maintain desired inventory.} \tn 
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% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Types: {\bf{Material Consumption Budget}} and {\bf{Material Purchase Budget}}.} \tn 
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% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Main focus: How much material will be consumed, and how much must be purchased?} \tn 
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% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key inputs: Production, material consumption per unit, opening stock, desired closing stock and purchase price.} \tn 
% Row Count 10 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Ensures material availability and supports purchase planning and cost control.} \tn 
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% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Depends on accurate production estimates, consumption standards and supply availability.} \tn 
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% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: {\bf{Consumption}} = Material needed for production; {\bf{Purchases}} = Consumption {\bf{adjusted for inventory}}.} \tn 
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% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Numerical trap: If wastage is expressed as a percentage of input, {\bf{Required Input = Good Output ÷ (1 − Wastage Rate)}}.} \tn 
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\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Formulas: \newline - {\bf{Material Required}} = Production Units × Material per Unit. \newline - {\bf{Material Purchases}} = Material Required + Desired Closing Stock − Opening Stock. \newline - {\bf{Purchase Cost}} = Purchase Quantity × Purchase Price.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Labour Budget}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Estimates {\bf{labour hours, workforce requirements and labour cost}} for {\bf{planned production}}.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: How many workers and labour hours are required, and what will they cost?} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key inputs: Production, labour time standards, wage rates, workforce availability and productivity.} \tn 
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% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Helps plan workforce requirements and control labour costs.} \tn 
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% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Productivity, absenteeism, labour turnover and overtime can make estimates inaccurate.} \tn 
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% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Labour Hours Budget = Time required; Labour Cost Budget = Wages required.} \tn 
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% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Keyword associations: {\bf{Idle Time}} → Paid but unproductive time; {\bf{Overtime}} → Work beyond normal hours; {\bf{Labour Turnover}} → Employees leaving and being replaced.} \tn 
% Row Count 18 (+ 4)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Formulas: \newline - {\bf{Labour Hours}} = Production Units × Labour Hours per Unit. \newline - {\bf{Labour Cost}} = Labour Hours × Wage Rate. \newline - {\bf{Workers Required}} = Total Labour Hours ÷ Working Hours per Worker. \newline - {\bf{Labour Productivity}} = Output ÷ Labour Hours.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Overhead Budget}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Estimates {\bf{indirect expenses}} expected to be incurred during a specified period.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Functional classification: Production / Factory → Administration → Selling → Distribution.} \tn 
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% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Cost behaviour: Fixed → Variable → Semi-variable.} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key process: Identify overheads → Classify by function → Classify by behaviour → Estimate → Consolidate → Monitor.} \tn 
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% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Formula: {\bf{OAR = Budgeted Overheads ÷ Budgeted Activity}}.} \tn 
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% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Allocation}}: Charging an overhead directly to {\bf{one cost centre}}.} \tn 
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\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Apportionment}}: Distributing common overhead among {\bf{multiple cost centres}}.} \tn 
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% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Helps control indirect costs and estimate total production expenditure.} \tn 
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% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Estimation and allocation of indirect costs can involve judgement.} \tn 
% Row Count 19 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Keyword associations: \newline - Factory rent → Production overhead. \newline - Advertising → Selling overhead. \newline - Delivery → Distribution overhead. \newline - Office rent → Administration overhead. \newline - Machine hours → Common overhead absorption base.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Cash Budget}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Estimates {\bf{future cash receipts and payments}} to determine {\bf{cash surplus}} or {\bf{deficit}}.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: When will cash actually come in and go out?} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Formula: {\bf{Closing Cash = Opening Cash + Cash Receipts − Cash Payments}}.} \tn 
% Row Count 7 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Methods: {\bf{Receipts and Payments Method; Adjusted Profit and Loss Method; Balance Sheet Method}}.} \tn 
% Row Count 9 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Cash receipts: Cash sales, debtor collections, loans received, sale of assets and other cash inflows.} \tn 
% Row Count 12 (+ 3)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Cash payments: Supplier payments, wages, overheads, taxes, capital expenditure, loan repayments and interest.} \tn 
% Row Count 15 (+ 3)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Non-cash items}}: Depreciation, provisions and bad debts are excluded as cash movements.} \tn 
% Row Count 17 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Helps manage liquidity and anticipate financing requirements.} \tn 
% Row Count 19 (+ 2)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Depends on accurate forecasts of receipts, payments and their timing.} \tn 
% Row Count 21 (+ 2)
% Row 9
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Cash Budget = Future cash forecast; Cash Flow Statement = Actual historical cash flows.} \tn 
% Row Count 24 (+ 3)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Cash Budget Methods}} \newline - {\bf{Receipts \& Payments}}: Opening cash + cash receipts − cash payments. \newline - {\bf{Adjusted P\&L}}: Start with estimated profit; add non-cash expenses, adjust working capital changes and other cash items. \newline - {\bf{Balance Sheet}}: Prepare estimated closing balance sheet; cash/bank is the balancing figure.  \newline {\bf{Closing Cash = Total Liabilities + Capital -Other Assets}} \newline  \newline Note: \newline - Profit does not necessarily mean positive cash flow.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Receipts and Payments Method}}  \tn
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Concept: Prepare a period-wise statement of all expected cash receipts and cash payments. \newline % Row Count 2 (+ 2)
1. {\bf{Cash receipts — ADD (+)}} \newline % Row Count 3 (+ 1)
Item	Treatment \newline % Row Count 4 (+ 1)
{\bf{\textgreater{}}} Cash sales	Add \newline % Row Count 5 (+ 1)
{\bf{\textgreater{}}} Collection from debtors	Add \newline % Row Count 6 (+ 1)
{\bf{\textgreater{}}} Sale of fixed assets	Add \newline % Row Count 7 (+ 1)
{\bf{\textgreater{}}} New loan received	Add \newline % Row Count 8 (+ 1)
{\bf{\textgreater{}}} Issue of shares/debentures	Add \newline % Row Count 9 (+ 1)
{\bf{\textgreater{}}} Interest/dividend received	Add \newline % Row Count 10 (+ 1)
{\bf{\textgreater{}}} Other cash income	Add \newline % Row Count 11 (+ 1)
{\bf{\textgreater{}}} Opening cash/bank balance	Add \newline % Row Count 12 (+ 1)
2. {\bf{Cash payments — SUBTRACT (−)}} \newline % Row Count 13 (+ 1)
Item	Treatment \newline % Row Count 14 (+ 1)
{\bf{\textgreater{}}} Cash purchases	Subtract \newline % Row Count 15 (+ 1)
{\bf{\textgreater{}}} Payment to creditors	Subtract \newline % Row Count 16 (+ 1)
{\bf{\textgreater{}}} Wages and salaries	Subtract \newline % Row Count 17 (+ 1)
{\bf{\textgreater{}}} Rent and other expenses paid	Subtract \newline % Row Count 18 (+ 1)
{\bf{\textgreater{}}} Purchase of fixed assets	Subtract \newline % Row Count 19 (+ 1)
{\bf{\textgreater{}}} Loan principal repaid	Subtract \newline % Row Count 20 (+ 1)
{\bf{\textgreater{}}} Interest paid	Subtract \newline % Row Count 21 (+ 1)
{\bf{\textgreater{}}} Tax paid	Subtract \newline % Row Count 22 (+ 1)
{\bf{\textgreater{}}} Dividend paid	Subtract \newline % Row Count 23 (+ 1)
{\bf{\textgreater{}}} Other cash expenses	Subtract \newline % Row Count 24 (+ 1)
3. Important adjustments in numerical questions \newline % Row Count 25 (+ 1)
{\bf{A. Credit sales and debtor collections}} \newline % Row Count 26 (+ 1)
If sales are on credit, don't include the entire sales amount as cash received. Calculate collections based on the given credit terms. \newline % Row Count 29 (+ 3)
Example: \newline % Row Count 30 (+ 1)
} \tn 
\end{tabularx}
\par\addvspace{1.3em}

\vfill
\columnbreak
\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Receipts and Payments Method (cont)}}  \tn
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{- January credit sales = ₹1,00,000 \newline % Row Count 1 (+ 1)
- 60\% collected in January \newline % Row Count 2 (+ 1)
- 40\% collected in February \newline % Row Count 3 (+ 1)
January receipt = ₹60,000; February receipt = ₹40,000. \newline % Row Count 5 (+ 2)
{\bf{B. Credit purchases and creditor payments}} \newline % Row Count 6 (+ 1)
Similarly, purchases are not cash payments until suppliers are paid. \newline % Row Count 8 (+ 2)
Example: \newline % Row Count 9 (+ 1)
- January credit purchases = ₹80,000 \newline % Row Count 10 (+ 1)
- 70\% paid in January \newline % Row Count 11 (+ 1)
- 30\% paid in February \newline % Row Count 12 (+ 1)
January payment = ₹56,000; February payment = ₹24,000. \newline % Row Count 14 (+ 2)
{\bf{C. Outstanding and prepaid expenses}} \newline % Row Count 15 (+ 1)
- Outstanding expense: Include when actually paid. \newline % Row Count 17 (+ 2)
- Prepaid expense: Include when cash is paid, even if it relates to a future period. \newline % Row Count 19 (+ 2)
{\bf{D. Non-cash items}} \newline % Row Count 20 (+ 1)
Exclude: \newline % Row Count 21 (+ 1)
- Depreciation \newline % Row Count 22 (+ 1)
- Amortisation \newline % Row Count 23 (+ 1)
- Goodwill written off \newline % Row Count 24 (+ 1)
- Provision for doubtful debts \newline % Row Count 25 (+ 1)
- Credit purchases/sales not yet settled in cash% Row Count 26 (+ 1)
} \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Adjusted Profit and Loss Method}}  \tn
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{The objective is to convert accounting profit into estimated cash. \newline % Row Count 2 (+ 2)
Step 1. {\bf{Start with Net Profit}} \newline % Row Count 3 (+ 1)
Take the estimated net profit as given in the question. \newline % Row Count 5 (+ 2)
Step 2. {\bf{Adjust non-cash and non-operating items}} \newline % Row Count 7 (+ 2)
Item	Treatment	Shortcut \newline % Row Count 8 (+ 1)
{\bf{\textgreater{}}} Depreciation:	Add (+)	Expense, but no cash paid \newline % Row Count 10 (+ 2)
{\bf{\textgreater{}}} Amortisation:	Add (+)	Non-cash expense \newline % Row Count 11 (+ 1)
{\bf{\textgreater{}}} Provision for doubtful debts:	Add (+)	No immediate cash outflow \newline % Row Count 13 (+ 2)
{\bf{\textgreater{}}} Goodwill written off:	Add (+)	Non-cash expense \newline % Row Count 15 (+ 2)
{\bf{\textgreater{}}} Loss on sale of fixed asset:	Add (+)	Accounting loss, not operating cash \newline % Row Count 17 (+ 2)
{\bf{\textgreater{}}} Profit on sale of fixed asset:	Subtract (−)	Accounting gain, not operating cash \newline % Row Count 19 (+ 2)
{\bf{\textgreater{}}} Interest income credited to P\&L:	Subtract (−)	Remove if separately treated as cash inflow \newline % Row Count 21 (+ 2)
{\bf{\textgreater{}}} Dividend income credited to P\&L:	Subtract (−)	Remove if separately treated as cash inflow \newline % Row Count 23 (+ 2)
{\bf{Shortcut: Non-cash expenses → ADD. Non-cash gains → SUBTRACT.}} \newline % Row Count 25 (+ 2)
Step 3. {\bf{Adjust working capital changes}} \newline % Row Count 26 (+ 1)
This is where MCQs can test whether you understand the direction of adjustment. \newline % Row Count 28 (+ 2)
Working capital item	Increase	Decrease \newline % Row Count 29 (+ 1)
{\bf{\textgreater{}}} Debtors / Receivables	−	+ \newline % Row Count 30 (+ 1)
} \tn 
\end{tabularx}
\par\addvspace{1.3em}

\vfill
\columnbreak
\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Adjusted Profit and Loss Method (cont)}}  \tn
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{\textgreater{}}} Stock / Inventory	−	+ \newline % Row Count 1 (+ 1)
{\bf{\textgreater{}}} Prepaid expenses	−	+ \newline % Row Count 2 (+ 1)
{\bf{\textgreater{}}} Creditors / Payables	+	− \newline % Row Count 3 (+ 1)
{\bf{\textgreater{}}} Outstanding expenses	+	− \newline % Row Count 4 (+ 1)
{\bf{\textgreater{}}} Income received in advance	+	− \newline % Row Count 5 (+ 1)
{\bf{\textgreater{}}} Accrued income	−	+ \newline % Row Count 6 (+ 1)
Two powerful shortcuts: \newline % Row Count 7 (+ 1)
-{\bf{ Current assets: Increase → subtract; decrease → add.}} \newline % Row Count 9 (+ 2)
- {\bf{ Current liabilities: Increase → add; decrease → subtract.}} \newline % Row Count 11 (+ 2)
Why? More current assets generally tie up cash; more current liabilities generally preserve cash by delaying payment. \newline % Row Count 14 (+ 3)
Step 4. {\bf{Account for other cash items separately}} \newline % Row Count 16 (+ 2)
Once you have calculated cash generated from operations, account for other cash flows. \newline % Row Count 18 (+ 2)
\seqsplit{Transaction	Treatment	Reason} \newline % Row Count 19 (+ 1)
{\bf{\textgreater{}}} Purchase of machinery / building	−	Cash paid \newline % Row Count 21 (+ 2)
{\bf{\textgreater{}}} Sale of machinery / building	+	Cash received \newline % Row Count 23 (+ 2)
{\bf{\textgreater{}}} Purchase of investments	−	Cash paid \newline % Row Count 24 (+ 1)
{\bf{\textgreater{}}} Sale of investments	+	Cash received \newline % Row Count 25 (+ 1)
{\bf{\textgreater{}}} New loan raised	+	Cash received \newline % Row Count 26 (+ 1)
{\bf{\textgreater{}}} Loan principal repaid	−	Cash paid \newline % Row Count 27 (+ 1)
{\bf{\textgreater{}}}Issue of shares	+	Cash received \newline % Row Count 28 (+ 1)
{\bf{\textgreater{}}} Redemption / buyback of shares	−	Cash paid \newline % Row Count 30 (+ 2)
} \tn 
\end{tabularx}
\par\addvspace{1.3em}

\vfill
\columnbreak
\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Adjusted Profit and Loss Method (cont)}}  \tn
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{\textgreater{}}} Interest paid	−	Cash outflow \newline % Row Count 1 (+ 1)
{\bf{\textgreater{}}} Tax paid	−	Cash outflow \newline % Row Count 2 (+ 1)
{\bf{\textgreater{}}} Dividend paid	−	Cash outflow \newline % Row Count 3 (+ 1)
{\bf{\textgreater{}}} Opening cash balance	+	Already available cash \newline % Row Count 5 (+ 2)
Shortcut: \newline % Row Count 6 (+ 1)
- {\bf{Money coming IN → ADD.}} \newline % Row Count 7 (+ 1)
- {\bf{Money going OUT → SUBTRACT.}} \newline % Row Count 8 (+ 1)
- {\bf{Ignore non-cash transactions.}} \newline % Row Count 9 (+ 1)
Step 5. Calculate closing cash \newline % Row Count 10 (+ 1)
{\bf{Closing Cash=Opening Cash+Net Cash Movement}}% Row Count 11 (+ 1)
} \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Master Budget}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: {\bf{Consolidated overall budget}} combining functional budgets.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Operating Budget}}: Sales, production, material, labour, overheads and budgeted P\&L.} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Financial Budget}}: Cash budget, capital expenditure, financing and budgeted balance sheet.} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key process: {\bf{Functional budgets → Operating and financial plans → Master Budget}}.} \tn 
% Row Count 8 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major purpose: Coordination, resource allocation, planning and control.} \tn 
% Row Count 10 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Functional = individual department; Master = organisation-wide.} \tn 
% Row Count 12 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Keyword association: Master Budget = Integrated plan; {\bf{Pro forma = Budgeted financial statements}}.} \tn 
% Row Count 14 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Budgeted Income Statement and Balance Sheet}}  \tn
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Budgeted Income Statement}}: Forecasts revenue, expenses and profit. \newline % Row Count 2 (+ 2)
Format: {\bf{Sales − COGS = Gross Profit − Operating Expenses = EBIT − Interest − Tax = PAT}}. \newline % Row Count 4 (+ 2)
{\bf{COGS: Opening Stock + Purchases + Direct Expenses − Closing Stock}}. \newline % Row Count 6 (+ 2)
{\bf{Budgeted Balance Sheet}}: Forecasts assets, liabilities and equity. \newline % Row Count 8 (+ 2)
Key calculations: {\bf{Debtors}} = Opening + Credit Sales − Collections − Bad Debts; {\bf{Creditors}} = Opening + Credit Purchases − Payments. \newline % Row Count 11 (+ 3)
{\bf{Fixed assets}}: Opening net assets + Purchases − Book Value Sold − Depreciation. \newline % Row Count 13 (+ 2)
Key equation: {\bf{Assets = Liabilities + Equity}}. \newline % Row Count 14 (+ 1)
Connection: {\bf{PAT retained increases reserves/retained earnings}}. \newline % Row Count 16 (+ 2)
Key distinction: {\bf{Income Statement = performance over a period; Balance Sheet = financial position on a date}}. \newline % Row Count 19 (+ 3)
{\bf{A. Format of Budgeted Income Statement}} \newline % Row Count 20 (+ 1)
{\bf{Sales Revenue}}	 \newline % Row Count 21 (+ 1)
Less: Cost of Goods Sold \newline % Row Count 22 (+ 1)
{\bf{Gross Profit}} \newline % Row Count 23 (+ 1)
Less: Operating Expenses \newline % Row Count 24 (+ 1)
Selling expenses	 \newline % Row Count 25 (+ 1)
Administrative expenses	 \newline % Row Count 26 (+ 1)
{\bf{Operating Profit (EBIT)	}} \newline % Row Count 27 (+ 1)
Add: Non-operating income	 \newline % Row Count 28 (+ 1)
Less: Finance cost / Interest	 \newline % Row Count 29 (+ 1)
{\bf{Profit Before Tax (PBT)}}	 \newline % Row Count 30 (+ 1)
} \tn 
\end{tabularx}
\par\addvspace{1.3em}

\vfill
\columnbreak
\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Budgeted Income Statement and Balance Sheet (cont)}}  \tn
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Less: Tax	 \newline % Row Count 1 (+ 1)
{\bf{Profit After Tax (PAT)}} \newline % Row Count 2 (+ 1)
{\bf{B. Format of Budgeted Balance Sheet}} \newline % Row Count 3 (+ 1)
{\bf{Liabilities and Equity}} \newline % Row Count 4 (+ 1)
Share capital \newline % Row Count 5 (+ 1)
Reserves and surplus \newline % Row Count 6 (+ 1)
Long-term borrowings \newline % Row Count 7 (+ 1)
Trade payables / Creditors \newline % Row Count 8 (+ 1)
Outstanding expenses \newline % Row Count 9 (+ 1)
Other liabilities \newline % Row Count 10 (+ 1)
Total \newline % Row Count 11 (+ 1)
{\bf{Assets}} \newline % Row Count 12 (+ 1)
Fixed assets \newline % Row Count 13 (+ 1)
Less: Accumulated depreciation \newline % Row Count 14 (+ 1)
Inventory / Closing stock \newline % Row Count 15 (+ 1)
Trade receivables / Debtors \newline % Row Count 16 (+ 1)
Cash and bank \newline % Row Count 17 (+ 1)
Prepaid expenses \newline % Row Count 18 (+ 1)
Total \newline % Row Count 19 (+ 1)
The fundamental accounting equation: {\bf{Assets = Liabilities + Equity}}.% Row Count 21 (+ 2)
} \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Types and Modern Approaches to Budgeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{} \tn 
% Row Count 0 (+ 0)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Zero-based budgeting.}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Associated with: {\bf{Peter A. Pyhrr}}.} \tn 
% Row Count 1 (+ 1)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Origin of the modern approach: Developed and popularised at {\bf{Texas Instruments}}.} \tn 
% Row Count 3 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Starting point: {\bf{Zero base}}.} \tn 
% Row Count 4 (+ 1)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Core requirement: Fresh justification of expenditure.} \tn 
% Row Count 6 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key terminology: {\bf{Decision unit, decision package, ranking}}.} \tn 
% Row Count 8 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Resource allocation: Based on evaluated priorities and available resources.} \tn 
% Row Count 10 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Application: Both existing and new activities can be evaluated.} \tn 
% Row Count 12 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Time-consuming and costly preparation.} \tn 
% Row Count 14 (+ 2)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Identification and elimination of unnecessary expenditure.} \tn 
% Row Count 16 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{ZBB in six words/steps \newline {\bf{Zero → Identify → Justify → Evaluate → Rank → Allocate}} \newline Start afresh → identify activities → prepare packages → evaluate proposals → rank priorities → distribute funds. \newline  \newline - {\bf{Decision unit}} = where expenditure is examined. \newline - {\bf{Decision package}} = why the activity deserves funding. \newline - {\bf{Ranking}} = which package gets priority.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Performance Budgeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Links financial allocations with physical performance and results.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: What was achieved with the money spent.} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key components: {\bf{Inputs (resources), Outputs (goods/services delivered), Outcomes (broader results)}}.} \tn 
% Row Count 7 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Three Es: {\bf{Economy (cost of resources), Efficiency (input-output relationship), Effectiveness (achievement of objectives)}}.} \tn 
% Row Count 10 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Better accountability and result-oriented resource allocation.} \tn 
% Row Count 12 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Difficult to measure outcomes; requires reliable data and monitoring.} \tn 
% Row Count 14 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{India: First ARC recommended it in 1966; introduced in selected ministries in 1968–69.} \tn 
% Row Count 16 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Outcome Budget}}: Introduced in 2005–06; focuses on measurable outcomes and impact.} \tn 
% Row Count 18 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Performance Budgeting in six steps \newline {\bf{Objectives → Activities → Targets → Resource allocation → Performance measurement → Review}}. \newline  \newline - {\bf{Input}} = resources used. \newline - {\bf{Output}} = direct goods/services delivered. \newline - {\bf{Outcome}} = broader result achieved. \newline - Performance vs Outcome Budget = work and performance vs results and impact.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Programme Budgeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Organises and allocates expenditure around programmes and organisational objectives.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: What programmes should be undertaken to achieve desired objectives.} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key structure: {\bf{Programme → Sub-programme → Activity}}.} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Resource allocation: Based on programme objectives, priorities and requirements.} \tn 
% Row Count 8 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Better coordination, planning and objective-oriented allocation.} \tn 
% Row Count 10 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Complex classification, overlapping activities and coordination difficulties.} \tn 
% Row Count 12 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{PPBS}} → {\bf{Planning–Programming–Budgeting System}}. Connection: Programme Budgeting is one important element within the broader PPBS approach.   {\bf{Robert McNamara}} → Associated with the \seqsplit{introduction/popularisation} of PPBS in the US Department of Defense in the 1960s.} \tn 
% Row Count 18 (+ 6)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Programme Budgeting in six steps \newline {\bf{Objectives → Programmes → Sub-programmes → Activities → Resource allocation → Review}}. \newline  \newline - {\bf{Programme}} = broad objective-oriented grouping of activities. \newline - {\bf{Sub-programme}} = component of a programme. \newline - {\bf{Activity}} = specific task undertaken.}  \tn 
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Incremental Budgeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Uses the previous period's budget as the base and adjusts it for expected changes.} \tn 
% Row Count 2 (+ 2)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: What changes are required to the existing budget?} \tn 
% Row Count 4 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key process: {\bf{Previous Budget → Adjustments (+/−) → Revised Budget → Approval → Control}}} \tn 
% Row Count 6 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Formula: {\bf{New Budget = Previous Budget + Net Adjustments}}.} \tn 
% Row Count 8 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Adjustments: May include {\bf{both increases and reductions}}.} \tn 
% Row Count 10 (+ 2)
% Row 5
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\mymulticolumn{1}{x{5.377cm}}{Major strength: Simple, economical, less time-consuming and predictable.} \tn 
% Row Count 12 (+ 2)
% Row 6
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\mymulticolumn{1}{x{5.377cm}}{Major weakness: Perpetuates historical inefficiencies; limited scrutiny of existing expenditure.} \tn 
% Row Count 14 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Budgetary slack}}: Deliberate overestimation of costs or underestimation of revenues.} \tn 
% Row Count 16 (+ 2)
% Row 8
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\mymulticolumn{1}{x{5.377cm}}{Numerical trap: Consecutive percentage increases are {\bf{compounded}}.} \tn 
% Row Count 18 (+ 2)
% Row 9
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\mymulticolumn{1}{x{5.377cm}}{Suitability: Relatively {\bf{stable operating environments}}.} \tn 
% Row Count 20 (+ 2)
% Row 10
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Keyword association: {\bf{Use-it-or-lose-it}} → Incremental Budgeting.} \tn 
% Row Count 22 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Rolling / Continuous Budgeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: A budget that is {\bf{continuously updated}} by adding a new future period as the current period ends.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: Maintaining a continuously updated, fixed future planning horizon.} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key process: {\bf{Set Planning Horizon → Prepare Budget → Monitor Actuals → Revise Estimates → Drop Completed Period → Add New Period}}.} \tn 
% Row Count 8 (+ 3)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Example: A 12-month budget is continuously rolled forward by dropping the completed month and adding a new month.} \tn 
% Row Count 11 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Frequency: {\bf{Monthly, quarterly or other periodic intervals}}.} \tn 
% Row Count 13 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Continuous planning, adaptability and improved forecasting.} \tn 
% Row Count 15 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Time-consuming, costly and administratively demanding.} \tn 
% Row Count 17 (+ 2)
% Row 7
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\mymulticolumn{1}{x{5.377cm}}{Suitability: {\bf{Dynamic and uncertain business environments}}.} \tn 
% Row Count 19 (+ 2)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Rolling Budget = Updates the time horizon; Flexible Budget = Adjusts for activity levels.} \tn 
% Row Count 22 (+ 3)
% Row 9
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Keyword association: {\bf{Fixed planning horizon + continuous updating}} → Rolling Budgeting.} \tn 
% Row Count 24 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Activity-Based Budgeting (ABB)}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Estimates budget requirements based on expected activities and the resources needed to perform them.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: What activities are required, in what quantity, and what resources will they consume?} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key process: {\bf{Forecast Demand → Identify Activities → Estimate Activity Quantities → Identify Cost Drivers → Estimate Resources → Prepare Budget → Monitor}}.} \tn 
% Row Count 9 (+ 4)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Cost driver}}: Factor that causes or influences the cost of an activity.} \tn 
% Row Count 11 (+ 2)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Activity cost pool}}: Collection of costs associated with a particular activity.} \tn 
% Row Count 13 (+ 2)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Better cost estimation, resource allocation and identification of inefficient activities.} \tn 
% Row Count 16 (+ 3)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Complex, time-consuming, costly and data-intensive.} \tn 
% Row Count 18 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Suitability: Organisations with {\bf{diverse activities}} and {\bf{significant overhead costs}}.} \tn 
% Row Count 20 (+ 2)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: ABC calculates product/service costs using activities; ABB estimates future resource requirements using expected activities.} \tn 
% Row Count 23 (+ 3)
% Row 9
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Keyword association: {\bf{Cost drivers + Expected activities → Activity-Based Budgeting}}} \tn 
% Row Count 25 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Participative Budgeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Budget prepared with the involvement of managers and employees at different organisational levels.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: Who participates in budget preparation?} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Alternative name: {\bf{Bottom-Up Budgeting}}.} \tn 
% Row Count 6 (+ 1)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key process: {\bf{Top Management Guidelines → Departmental Estimates → Discussion \& Negotiation → Consolidation → Approval → Implementation}}.} \tn 
% Row Count 9 (+ 3)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Better estimates, motivation, ownership, commitment and coordination.} \tn 
% Row Count 11 (+ 2)
% Row 5
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\mymulticolumn{1}{x{5.377cm}}{Major weakness: Time-consuming; risk of budgetary slack and departmental conflicts.} \tn 
% Row Count 13 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{{\bf{Budgetary slack}}: Deliberate overestimation of costs or underestimation of revenues.} \tn 
% Row Count 15 (+ 2)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Participative budgeting focuses on involvement in preparation; Responsibility Budgeting focuses on accountability.} \tn 
% Row Count 18 (+ 3)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Keyword association: Bottom-up approach → Participative Budgeting.} \tn 
% Row Count 20 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}

\begin{tabularx}{5.377cm}{X}
\SetRowColor{DarkBackground}
\mymulticolumn{1}{x{5.377cm}}{\bf\textcolor{white}{Responsibility Budgeting}}  \tn
% Row 0
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Core concept: Budgets are prepared for different {\bf{responsibility centres}}, and managers are held {\bf{accountable}} for their respective performance.} \tn 
% Row Count 3 (+ 3)
% Row 1
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Main focus: Who is responsible for costs, revenue, profit and investment?} \tn 
% Row Count 5 (+ 2)
% Row 2
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key structure: {\bf{Cost Centre → Revenue Centre → Profit Centre → Investment Centre}}.} \tn 
% Row Count 7 (+ 2)
% Row 3
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Performance measures: {\bf{Cost Centre}} → Cost control.  {\bf{Revenue Centre}} → Revenue generation.  {\bf{Profit Centre}} → Profit (Revenue and costs).  {\bf{Investment Centre}} → ROI / Residual Income (Revenue, costs and assets/investment).} \tn 
% Row Count 12 (+ 5)
% Row 4
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Key principle: {\bf{Controllability Principle}} — managers should be evaluated primarily on factors within their control.} \tn 
% Row Count 15 (+ 3)
% Row 5
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Major strength: Clear accountability, cost control, performance evaluation and decentralisation.} \tn 
% Row Count 17 (+ 2)
% Row 6
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Major weakness: Departmental conflicts, uncontrollable factors and difficulty allocating common costs.} \tn 
% Row Count 20 (+ 3)
% Row 7
\SetRowColor{white}
\mymulticolumn{1}{x{5.377cm}}{Key distinction: Responsibility Budgeting focuses on {\bf{accountability}}; Participative Budgeting focuses on employee involvement in budget preparation.} \tn 
% Row Count 24 (+ 4)
% Row 8
\SetRowColor{LightBackground}
\mymulticolumn{1}{x{5.377cm}}{Keyword association: Responsibility Centres → Responsibility Budgeting.} \tn 
% Row Count 26 (+ 2)
\hhline{>{\arrayrulecolor{DarkBackground}}-}
\end{tabularx}
\par\addvspace{1.3em}


% That's all folks
\end{multicols*}

\end{document}