The Concept of Budgetary Control

The Concept of Budgetary Control - The Concept of Budgetary...

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The Concept of Budgetary Control One of management's major functions is to control company operations. Control consists of the steps  taken by management to see that planned objectives are met. We now ask: How do budgets contribute  to control of operations? The use of budgets in controlling operations is known as  budgetary control . Such control takes  place by means of  budget reports  that compare actual results with planned objectives. The use of  budget reports is based on the belief that planned objectives lose much of their potential value  without some monitoring of progress along the way. Just as your professors give midterm exams to  evaluate your progress, so top management requires periodic reports on the progress of department  managers toward their planned objectives. Budget reports provide management with feedback on operations. The feedback for a crucial 
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The Concept of Budgetary Control - The Concept of Budgetary...

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