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Merits of Budgetary Control

Write down the merits of Budgetary Control?

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Merits of Budgetary Control are illustrated below:

- It is an influential tool for the reason of and profit maximization and cost control.

- It allows the management to make the most of the use of accessible resources in a good number profitable way.

- As a budgetary control is depended on a budget that sets the plan of act in respect of different functional regions of operations. Therefore, it acts as a means of statement of the policies of the management.

- It acts as signifies of communication.

- It acts as a means of improving coordination through developing team strength in the organization.

- It allows the management to take appropriate actions in regard to the unfavorable variations in the real and budgeted results.

- It allows the allocation of authority.

- It is an influential tool with the management for performance assessment.

- It also offers a basis for the establishment of the inducement systems.

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