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.
