Question

Explain advantages and disadvantages of budgetary control

Answer 1

                                    BUDGETARY CONTROL

ADVANTAGES
 
Budgetary control defines the goals and policies of an entity. It fixes targets. It is an effective method of controlling activities because it forces every department to work efficiently.

It helps in reducing the cost of production by eliminating the wasteful expenditure.

It facilitates centralise control with decentralised activities.

DISADVANTAGES

Preparing a budget requires a lot of effort and expenditure which small business cannot afford.

Budget is always prepare for future considering the present conditions, conditions might change in future.

 Under inflationary conditions it is very difficult to prepare a budget.

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Answer 2

Answer:

BUDGETARY

CONTROL

ADVANTAGES

Budgetary control defines the goals

and policies of an entity. It fixes targets

It is an effective method of controlling

activities because it forces every

department to work efficiently.

It helps in reducing the cost of

production by eliminating the wasteful

expenditure.

It facilitates centralise control with

decentralised activities.

DISADVANTAGES

Preparing a budget requires a lot of effort

and expenditure which small business

cannot afford.

Budget is always prepare for future

considering the present conditions,

conditions might change in future.