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Budgetary Control In Reliance Digital

1390 Words6 Pages

INTRODUCTION
Reliance Digital is a one stop shop where digital products from over 150 national and international brands, consisting of over 4000 products, can be obtained. Not only the wide variety of products, but also the ambience of the store along with high customer satisfaction has resulted in it being one of the top digital retail stores in India.
A special feature of Reliance Digital is ‘ResQ’, an advisory and post sales service team who provide complete product life cycle support to the customer.
Another feature that distinguishes them is their value for money concept, which gives the best value of money in terms of TCO [Total Cost of ownership]
Many a times, the price that we pay to buy a product is not the only cost we face. There …show more content…

A budget is defined as plan relating to a definite future period of time expressed in monetary terms. It is an important tool of planning and control. Budgetary control is defined as a system of controlling cost through preparation of Budgets. It helps in bringing control and coordination in business operations.
At Reliance Digital, a budget value is set for the year. All the costs that they have incurred, the bills etc. are totally calculated at the end of the year and compared with the budget. If the actual values are well within the budget constraints, then the retail store is said to be profit, which is then posted to Profit and Loss Account. But, if they cross the budget, they are to report as making losses for the company.
Advantages of Budgetary control:
1) Thinking ahead, results in more comfortability in changing conditions.
2) Increases efficiency, reduces waste and control costs
3) Actual results can be compared against the Budget.
4) Motivates executives to achieve targets and goals and many more other …show more content…

are controllable to an extent. Most costs are controllable in the long run, but not in the short run.
Controlling wastage and loss of materials during production/ total costs of labour/ idle time of workers/machines :
In a service industry , there is no physical waste as such, since they are not manufacturing anything. There is the possibility of stock of products not sold. This will increase costs to the company. It is not profitable since they are not sold. To overcome this, offers , discounts, and all are given so as to attract the customers and earn profits.
Another way to control costs is by trying to prepare an accurate budget. This although time consuming, if done well, is extremely beneficial to the company since it controls waste. From the budget, a manager can decide what to sell, how much etc. , subject to

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