The firm’s budgetary plans, though not comprehensively self-contained, encompass search procedures for specific goal attainments by management, and thus are the reference base for budgetary control. Budgetary control results from the calculation and evaluation of variances which are derived from the comparison of the actual with the budgeted activities of the firm. Budgetary control thus implies that managers are responsible for mistakes or deviations from the budgetary plans; this is its corrective function. Within that context, budgetary control also means the application of rules for monitoring and harmonising production, administration and the general business and non-business activities of the firm in accordance with the firm’s objectives.
KeywordsExpense Schiff Lewin
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