8 ADVANTAGES OF BUDGETARY CONTROL SYSTEM
What is a Budget? A budget refers to an estimated statement. It is prepared by companies as well as the government. It is for the purpose of attaining some goal. Budget can be defined as a financial and/or quantitative statement prepared and approved prior to a defined period of time of the policy to be pursued during that period for the purpose of attaining a given objective. It may include income, expenditure, and employment of capital. It is often used for control purposes. What is Budgetary Control? It is a process in which a budget is set and the actual is compared with a budget to analyse variances. It means the establishment of budgets relating the responsibilities of executives to the prerequisite of policy and the continuous evaluation of actual with budgeted results either to secure by individual action the objective of that policy or to provide a base for its revision. Objectives of Budget Planning: A set of targets/goals is often essential to lead and focus on individ...