Question

Budgetary control helps the management in __________.

• A. Obtaining bank credit
• B. Issue of shares
• C. Getting grants from government
• D. All of these

Answer 1

The correct option is A Obtaining bank credit

Budgetary control is the process of determining various actual results with budgeted figures for the enterprise for the future period and standards set then comparing the budgeted figures with the actual performance for calculating variances if any.

A budget is a means and budgetary control is the end result. The budgetary control system enables the management to conduct business in the most efficient manner.
Budgeting also aids in obtaining bank credit, as the main work of banks is to provide funds for business projects.