Asked in Business Accounting and Bookkeeping
6 Differentiate between Standard Costing and Budgetary Control?
August 23, 2011 2:53PM
1. Budgetary control deals with the operation of a department or the business as a whole in terms of revenue and expenditure. Standard costing is a system of costing which makes a comparison between standard costs of each product or service with its actual cost.
2. Budgetary control covers as a whole in terms of revenue and expenditures such as purchases, sales, production, finance etc. Standard costing is related to a product and its cost only.
3. Budgetary control is applicable to utmost all business organizations. Standard costing is applicable to manufacturing concerns producing standard products and services.
4. Budgetary control is concerned with a specific period and is based on the totals of amounts. Standard costing is concerned with the standard costs, which are worked out generally per unit of production.
5. Budgetary control is not based on standard costing system. Standard costing cannot exist in the absence of a budgetary control system.
Posted Syeda Humaira Fatima