2/20/2023 0 Comments Budget planning and control![]() The following are the important objectives of budgetary control. Objectives of Budgetary Control:īudgetary control systems have been introduced for three main purposes. Another feature of budgetary control is the use of budgets as planning and control strategies.One of the features of budgetary control is to analyze the causes of any deviation by comparing the actual results with the budget and to take remedial action. ![]() It is an important aspect of budgetary control to consistently compare the standard set by the budget with the actual results.Implementing the budget through the personal efforts and actions of the executive officers is another feature of budgetary control.It includes defining executive responsibilities through the budget and allocating resources.One of the features of budgetary control is to formulate a budget for the purpose of implementing the plan.Features of Budgetary Control:Īnalyzing the definition of budgetary control, the following are the features of budgetary control: In budgetary control, predefined budget allocations are used as criteria or standards to measure actual results. In the budgetary control system, the budget plays an important role in both planning and control. When the budget is used as a tool of planning and control to carry out all of the functions of the business correctly, and the actual results are regularly compared with the budget and remedial control orders are issued as needed, this method is called budgetary Control.īudgetary control is a system of controlling costs which includes the preparation of budgets, coordinating the departments and establishing responsibilities, comparing actual performance with that budgets acting upon results to achieve maximum profitability. Essentials Elements or Pre-requisites for Introduction of Budgetary Control System What is Budgetary Control?īudgetary control refers to a budget-based control.
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