Budgetary control an its characteristics posted by
What is Budgetary Control? What are its characteristics?
Budgetary Control is a methodical control technique whereby budgets are prepared
relating the responsibilities of budget holders. It is a continuous comparison
of actual results with budgeted results, to ensure that the objectives of the
company’s policy are achieved; or to provide a basis for the change of those
objectives. In simple terms, it is the analysis of the plans which the
organisation has made; what was the result when those plans were implemented
practically. After practical implementation of the budget if any variation is
seen in the actual result to the budget result then the reasons for the
variations are fount out and corrective actions are taken to correct
Following are the characteristics of Budgetary control:
-It deals with the establishment of the budgets.
-A control technique where actual results are extracted from the organisation’s
operations and compared with the budget prepared.
-Any differences or variations are computed and made the responsibility of key
individual who can either take actions for maintain the favourable variations
or revise the budgets.