Organizational Budget and its Mechanism of Budgetary Control

Organization is set up with the aim of earning profit along with long term sustainability. Longevity and sustainment of any business is determined with two factor Production cost and returns equivalent to these cost. Business organization in order to grab more profit and to maintain their cost of production prepares financial statement keeping a bird eye on budget to be allotted to various departments for executing their departmental functions. Yes, it’s the budget and budgetary control mechanism implemented in the organization that facilities identification and curtailment of cost of production in whose lieu business can earn comparatively good returns from the market. These research works mainly concentrate on what is organizational budget and what are various tactics or mechanism implemented by the organization in order to survive in the market with high profitability. Moreover the research work highlights the real importance of budget preparation and implementation of budgetary mechanism in the organization keeping in view their organizational attributes.