Compare Budgetary Control & Standard Costing.
- Budgetary Control is the limit on the expenditure above which expenses should not exceed whereas Standard Costing is a technique where minimum standards are set to be attained by the actual performance.
- Budgets can be prepared in the various areas of activities like sales, purchase, finance, etc. whereas Standard costing specifically relates to the function of production and manufacturing costs.
- Budgets are prepared for future period of time on estimated costs of required factors of production like material, labour etc. Whereas standard costing is not used for forecasting purposes. They are planned costs under the ideal circumstances.
- More analysis is required in case of standard costing variance than in case of budgetary control variance.
- In budgets variance points out efficiency or inefficiency whereas in standard costing variance provides material for further investigation.
- Scope of standard costing is much wider than that of Budgetary Control.
- Budgetary Control system is independent of Standard costing system.