Budgetary control

Budgetary control is a system of controlling cost which includes preparation of Budgets coordinating the departments and establishing responsibilities comparing performance with budgeted and acting upon results to achieve the maximum profitable.

The process of budgetary control includes:

• Preparation of various budgets.
• Continuous comparison of actual performance with budgetary performance.
• Revision of budgets in the light of changed circumstances.

A system of budgetary control should not become rigid.

There should be enough scope of flexible individual initiative and drive. Budgetary control is an important device for making the organization an important tool for controlling costs and _____ ________ _________ _______ __________ ____ _______ ____ ________ _______ __________ ____.
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