TABLE OF CONTENTS

* Executive Summary 2 * Introduction 3 * Cash Budget 3 * Operating Budget 3 * Budgeting Administration 4 * Behavioural Aspect of Budgeting 4 * Participative Budgeting 5 * Top Down Process 6 * Bottom up Process 6 * Budgetary Slack 6 * Frequent feedback on Performance 7 * Monetary and Nonmonetary Incentives 7 * Realistic Standards 8 * Controllability of Costs 8 * Multiple Measures of Performance 8 * Conclusion 8 * References 9

Executive Summary:
The following Accounting report contains information related to budgets, different types of budgets and how this all leads to change in different aspect of human behaviour. The objective of this report is to promote a reasonable amount of positive behaviour in an organization. There are five factors which are being discussed in this report, Participative budget, and frequent feedback on performance, Monetary and Nonmonetary incentives, Realistic Standards, Controllability costs.
Under participative budget there are two levels of management the first one is top level management and the second is bottom level management. Participative budget also creates a slack which is known as budgetary slack for management.

Introduction:-
A budget is a list of all planned expenses and revenues and budget is a plan for saving and spending. Budget is an important concept in an organization because it uses a budget line to illustrate the trade-offs between two or more goods. It is impossible for managers to work without information because it is important for management process, and accounting is the major information systems