as this quetions is related to budh«gets, I will start by explaining what a budgets is and then the importance of controlling it. A budget is a Plan which show how much money will be needed by a business and how that money will be used during a certain period. A budgetary control is process of comapring the actual expenditure with the budget amount for a certain periods. the diferences between them are called discrepancy or varinaces. Each department within a business is a llocated a budget and the concerned manager may possibly be held reponsible for any discrepancy on the budget. the discrepancy can be favourable or unfavourable but to ascertain wheter the discrepancy is favourable or not others aspects need to be taken into consideration. Budgetary control is importante in the sense that it allows to make sure that
Budgetary Control concerns itself with the total costs for each department. Each variance is the responsibility of the official who is in charge of the department in which it arises. This official must then explain the cause of the variance and take to prevent its recurrence.
Distinction Between Standard Costing And Budgetary ControlAlthough budgetary control and standard costing both are based on some common principles; both are pre-determined, comparison will be made with the actual costs and both system need a revision of the standards or the budget, these two systems have certain differences which are as follows: 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
Non-Budgetary control is laying control on your non-budgeted expenses i.e those expenses which are not defined in normal budgeted expenses. The techniques for these non-budgetary control are : 1) Statistical data analysis. 2) Break-even analysis or the no profit & no-loss analysis. 3)Gantt Charts 4) PERT (Programmed Evaluation & Review Technique).
budget slack can be prevented by good alignment between budgeting process and the organization's strategy which achieved by communication and coordination between top management and line managers or strategic business units to ensure that all line managers have the same perspective about achieving the organizational goals.good implementation of budgetary control also plays a role in preventing budgetary slack.
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One advantage of budgetary control is the fact that managers can control spending. A disadvantage to budgetary controls is that it may limit innovation.
Budgetary Control concerns itself with the total costs for each department. Each variance is the responsibility of the official who is in charge of the department in which it arises. This official must then explain the cause of the variance and take to prevent its recurrence.
A.W Willsmore has written: 'Business budgets and budgetary control' -- subject(s): Budget in business
Walter Rautenstrauch has written: 'Budgetary control' -- subject(s): Budget in business
The importance of food cost control is to maintain profit margins for the business. In a restaurant food costs and labor are the highest expenses to the business.
Distinction Between Standard Costing And Budgetary ControlAlthough budgetary control and standard costing both are based on some common principles; both are pre-determined, comparison will be made with the actual costs and both system need a revision of the standards or the budget, these two systems have certain differences which are as follows: 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
Methodical control of an organization's operations through establishment of standards and targets regarding income and expenditure, and a continuous monitoring and adjustment of performance against them is called Budgetary control.
Robert George Alfred Boland has written: 'Budgetary control' -- subject(s): Budget in business
This budgetary unit is known as the control center.
Non-Budgetary control is laying control on your non-budgeted expenses i.e those expenses which are not defined in normal budgeted expenses. The techniques for these non-budgetary control are : 1) Statistical data analysis. 2) Break-even analysis or the no profit & no-loss analysis. 3)Gantt Charts 4) PERT (Programmed Evaluation & Review Technique).
It's the Finance Ministry who is responsible for budgetary control. The Ministry is assisted by Finance Secretary,Central Bank, Planning Commission. But the overall responsibility is bestowned upon the Finance Ministry.
budget slack can be prevented by good alignment between budgeting process and the organization's strategy which achieved by communication and coordination between top management and line managers or strategic business units to ensure that all line managers have the same perspective about achieving the organizational goals.good implementation of budgetary control also plays a role in preventing budgetary slack.