What is budget budgetary control?
l A budget is a financial plan for a business, prepared in advance. l Budgetary planning is the process of setting the budget for the next period. l Budgetary control uses the budgets to monitor actual results with budgeted figures. l Responsibility for budgets is given to managers and supervisors – the budget holders.
What is budgetary control example?
An example would be an advertising budget or sales force budget. b) Budgetary control: A control technique whereby actual results are compared with budgets. Any differences (variances) are made the responsibility of key individuals who can either exercise control action or revise the original budgets.
What is budgetary control PDF?
“Budgetary control is the establishment of budgets relating to the responsibilities of. executives of a policy and the continuous comparison of the actual with the budgeted Page 2 results, either to secure by individual action, the objective of the policy or to provide a basis for its revision.”
What type of control is budget?
Budgetary control is a system of controlling cost which includes preparation of Budgets coordinating the departments and establishing responsibilities comparing performance with budgeted and acting upon results to achieve the maximum profitable.
What do you mean by budget and budgetary control explain different types of budget?
‘Budgetary control’ starts with budgeting and ends with control. Budgetary control is the process of preparation of budgets for various activities and comparing the budgeted figures for arriving at deviations if any, which are to be eliminated in future. Thus budget is a means and budgetary control is the end result.
What type of control is a budget?
What is the importance of budget control?
The importance of budgetary control is reflected from the fact that it helps the management to efficiently track the company’s performance. Such monitoring ensures that the deviation of the company’s actual performance from the budgeted one is always under the scanner and can be rectified before it is too late.
What is budget and budgetary control in accounting?
https://www.youtube.com/watch?v=IFtqzOlYrdg