Question

Write a short note on budgetary control as a technique of managerial control.

Answer 1

Budgetary control is a technique of managerial control in which all operations are planned in advance in the form of budgets and actual results are compared with budgetary standards. This comparison helps to identify the deviations and the necessary actions to be taken so that organisational objectives are achieved. At the same time, it is a source of motivation to the employees, as they know clearly the standards against which their performance is appraised. It also helps to achieve coordination among different departments.