Budgetary control refers to how well managers utilize budgets to monitor and control costs and operations in a given accounting period. In other words, budgetary control is a process for managers to set financial and performance goals with budgets, compare the actual results, and adjust performance, as it is needed.
Budgetary control is used as a tool of management control and derives some benefits. Even though, there are some disadvantages or limitations also. Budgets present the objectives, plans and programs of the enterprise and express them in financial and/or quantitative terms in the organization.
The main purpose of budgetary control is to enable the management to conduct the business in the most efficient manner in the organization.
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