Define Budgetary Control
Give a brief introduction of the term ‘Budgetary Control’ also writes down its characteristics?
Expert
Budgetary Control is a systematic control method where through budgets are made relating the responsibilities of budget owners. It is a constantly comparison of real results with budgeted results, to make sure that the objectives of the company’s strategy are accomplished; or to offer a basis for alter of those objectives. In easy words, it is the study of the strategy s that the organization has made; what the result was when those plans were applied practically. After practical execution of the budget if any difference is seen in the real result to the budget result then the purposes for the differences are found out and curative actions are taken to correct differences. The characteristics of budgetary control are illustrated below:
-It deals with the founding of the budgets. -A control method where real results are came from the organization’s operations and contrasted with the budget made. -Any differentiations or distinctions are measured and made the responsibility of key individual who can either take actions for preserve the favorable differentiations or amend the budgets.
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