Question

What is budgetary control? Explain its advantages & disadvantages?

Answer 1

Answer:

control is the process by which budgets are prepared for the future period and are compared with the actual performance for finding out variances.

Explanation:

Advantages of Budgetary Control: - It is a powerful tool for the purpose of cost control and profit maximization. - It enables the management to maximise the use of available resources in a most profitable manner. Thus, it acts as a means of declaration of the policies of the management.

The disadvantages of budgeting include the following: Time required.