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Budgeted Income Statement: The budgeted income statement is one of the key schedules in the budget process. It is the document that tells how profitable operations are anticipated to be in the forth- coming period. After it has been prepared, it stands a benchmark against which subsequent company performance can be measured (Garrison, 1985: 313).

Cash Budget: Cash budget is the detail showing cash receipt, cash disbursement and the balance cash. The cash budget is composed of four major sections: The receipt section, the disbursement section, the cash excess or deficiency section, and the financing section. The receipt section consists of the opening balance of cash added to whatever is expected in the way of cash receipts during the budget period. The disbursement section consists of cash payments that are planned for the budget period. The cash excess of deficiency section consists of the difference between the cash receipts section provides a detailed account of the borrowing and repayments projected to take place during the budget period. It is also includes a detail interest payment that will due to money borrowed.

Budgeted Balance Sheet: Budgeted balance sheet is a statement of assets and liabilities prepared after the preparation of operating budgets and financial budgets. It is based on functional or operating budgets, cash budget, projected income statement and the previous year’s assets and liabilities. In other words, budgeted balance sheet developed by beginning with the current balance sheet and adjusting it for the data contained in the other budgets.

3. Appropriation Budget

The appropriation budget covers all types of expenditure on advertising and research sectors.A part from above budgets, PPC also has relationship with following additional budgets, CVP analysis and completion of profit plan and performance reports:

Flexible Budgets: Flexible expenses budget relates only to expenses or costs. They are also called dynamic, activity or output adjusted expenses budgets. The concept of flexible expenses budget is that all expenses are incurred because of passage of time, output, activity or combination of time and output or activity. Therefore, it is complementary to tactical profit plan which helps to provide an expenses plan. They should be adjusted to actual output for comparison with actual expenses in periodic performance report. Expenses or costs must be identified into fixed and variable expenses or costs in flexible budget.

Capital Expenditure Budget: Capital expenditure budget is a process of planning and controlling of the long-term and short-term expenditure for expansions, replacement and contraction of fixed assets. Capital budgeting is useful to earn future profit and reduce future costs. The major elements of a capital expenditure budget are cash out-flow and cash in-flows. Cash outflow includes the cost of the project as cash out lays at different times during the life of a project. The cash out-flows are affected by the provision of residual value of old equipment, tax provision, additional working capital needed etc. cash inflows are expected cash revenue during the life of a project. The non-cash expenses like depreciation and tax position can affect the cash inflows.

Zero Based Budgeting: Zero based budgeting is the method of budgeting in which managers are required to start at zero budget levels every year and to justify all cost as if the programmers involved were being initiated for the first time. No costs are viewed as being on going in nature; the manager must start at the ground level each year and present justification for all costs in the proposed budget regardless of the type of cost involved. Zero based budgeting differs from traditional budgeting in which budgets are generally initiated on an incremental basis, the managers start with last year’s budget and simply adds to it according to anticipated needs. The manager does not have to start at the ground each year and justify ongoing costs for existing programs.

Activity Based Budgeting: Activity Based costing can lead to improved decision making which principles extend budgeting. Activity based budgeting focuses on the list of activities to produce and sell products and services. It separates indirect costs into separate homogeneous activity cost pools. Management uses the cause and effect criterion to identify to-cost-drivers for each of these indirect cost pools.

Cost-Volume-Profit Analysis: The analysis of relationship between cost, volume and profit is known as cost-volume-profit analysis. It is an analytical tool for studying the relationship between cost, volume profit and price. Cost-volume-profit analysis is great helpful in managerial decision making. Specially, cost control and profit planning is possible with the help of cost-volume profit analysis.

Completion of Profit Plan: The principal output of a budgeting is a comprehensive profit plan that ties together all phases of an organization’s operations. The completion of profit plan is comprised of many separate budgets or schedules that are interdependent. In other words, completion of profit plan means the process of profit planning ends with the planned income statement and planned balance sheet

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Performance Reports: Performance report is an important part of a comprehensive PPC system. The performance reporting phase of comprehensive PPC programmers significantly influences the extent to which the organization’s planned goals and objectives are attained. Performance reports deal with control aspect of PPC or management control function of management defined as “the action necessary to assure the objectives, plans, policies and standards are being attend” or in other word, the objectives of control is to guarantee the achievement of the planned objectives of the management by introducing periodic systematic correction measure. Performance report is one of the vital tools of management to exercise its control function effectively.