Definition

Budget committee

Budget committee is a group responsible for coordinating the preparation of the budget.

Budget committee has responsibility for coordinating the preparation of the budget. The committee ordinarily includes the president, treasure, chief accountant (controller), and management personnel from each of the major areas of the company, such as sales, production, and research.

The budget committee serves as a review board where managers can defend their budget goals and requests. Differences are reviewed, modified if necessary, and reconciled. The budget is then put in its final form by the budget committee, approved, and distributed.

Share it:  Cite

More from this Section

  • Direct material quantity standard
    The direct material quantity standard is the quantity of direct materials that should ...
  • Depreciation
    Depreciation is the process of allocating to expense the cost of a plant asset over its ...
  • Human element
    The human element is an important factor in every system of internal control. A good system ...
  • Dividends in arrears
    When preferred stock, is cumulative, preferred dividends not declared in a given period ...
  • Extraordinary items
    Extraordinary items are events and transactions that meet two conditions: They are (1) ...