Budget:
A budget is a details plan for future that is usually
expressed in formal quantitative terms.
Budgetary control:
Budgetary control
refers to how managers will utilize budget to monitor and control cost and operations
in given accounting period. In other words,
budgetary control is a process for manager to set financial and performance
goal with budgets, compare actual result and adjust performance as it is
needed.
02. Major benefits to be
gains from budget:
01. Budget
communicates management plans throughout the organization.
02. Budget force the
managers to think about and plan for future.
03. The budgeting
process provides a means of allocating resource to those parts of the
organization where they can be used most effectively.