Budgetary Control


Characteristics of Budgetary Control



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Budgetary Control
Characteristics of Budgetary Control
 Establishment of budgets for each function/department of the organization Comparison of actual performance with the budgets on a continuous basis Analysis of variations of actual performance from that the budgeted performance to know the reasons thereof Taking suitable remedial action, where necessary Revision of budgets in view of changes in conditions.
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Objectives / Purposes of Budgetary Control
1.Planning
A budget provides a detailed plan of action fora business over a definite period of time about production, sales, raw material requirements, labor needs, advertising & sales promotion performance,
research
& development activities, capital additions, etc. Budgeting forces management to think ahead-to anticipate & prepare for the anticipate conditions.
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