16 Questions
What is the main purpose of budgetary control?
To compare actual results with budgeted estimates
Which of the following is NOT a main element of budgetary control?
To evaluate the working of different departments
How does budgetary control help management?
By analyzing variances between budgets and actual results
What does budgetary control aid in achieving for the organization?
Effective use of resources
Which process does budgetary control involve to detect errors and mistakes?
Comparison of budgeted estimates with actual results
What role does budgetary control play in the allocation of responsibility and authority?
Important role
What is the primary function of a budget according to the given text?
Ensuring efficient resource usage
How does budgetary control enhance management efficiency?
By visualizing possible contingencies
What does budgetary control help in establishing among different departments and individuals?
Cooperation
How does budgetary control facilitate the exercise of control by top management?
By evaluating budgeted targets against actual performance
What is one of the benefits of budgetary control mentioned in the text?
Reduced scope of conflict
What does the text indicate about the role of budgeting in efficient communication within an organization?
It informs each manager of what others have agreed to do
What knowledge does budgeting provide to the management according to the text?
Knowledge of possible deficiencies and their removal
How does budgeting ensure efficient use of resources according to the text?
By informing each manager of what others have agreed to do
What is one of the effects of budgetary control on co-ordination among different departments and individuals?
Ensuring cooperation to attain targets
According to the given text, what does budgetary control facilitate among departmental heads and employees?
Understanding each other in respect of various problems faced
Learn about the meaning and process of budgetary control in business, including making a business budget, comparing actual performance with budgeted targets, and detecting errors for future improvement.
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