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Budgetary Control in Business

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Questions and Answers

What is the main purpose of budgetary control?

To coordinate all departmental budgets
To establish departmental budgets
To prepare departmental budgets
To compare actual results with budgeted estimates (correct)

Which of the following is NOT a main element of budgetary control?

To allocate responsibility and authority
To evaluate the working of different departments (correct)
To prepare departmental budgets
To integrate all activities of the enterprise

How does budgetary control help management?

By establishing departmental budgets
By analyzing variances between budgets and actual results (correct)
By coordinating all departmental budgets
By preparing departmental budgets

What does budgetary control aid in achieving for the organization?

Effective use of resources (B) Signup and view all the answers

Which process does budgetary control involve to detect errors and mistakes?

Comparison of budgeted estimates with actual results (C) Signup and view all the answers

What role does budgetary control play in the allocation of responsibility and authority?

Important role (A) Signup and view all the answers

What is the primary function of a budget according to the given text?

Ensuring efficient resource usage (D) Signup and view all the answers

How does budgetary control enhance management efficiency?

By visualizing possible contingencies (B) Signup and view all the answers

What does budgetary control help in establishing among different departments and individuals?

Cooperation (B) Signup and view all the answers

How does budgetary control facilitate the exercise of control by top management?

By evaluating budgeted targets against actual performance (C) Signup and view all the answers

What is one of the benefits of budgetary control mentioned in the text?

Reduced scope of conflict (A) Signup and view all the answers

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 (B) Signup and view all the answers

What knowledge does budgeting provide to the management according to the text?

Knowledge of possible deficiencies and their removal (D) Signup and view all the answers

How does budgeting ensure efficient use of resources according to the text?

By informing each manager of what others have agreed to do (D) Signup and view all the answers

What is one of the effects of budgetary control on co-ordination among different departments and individuals?

Ensuring cooperation to attain targets (B) Signup and view all the answers

According to the given text, what does budgetary control facilitate among departmental heads and employees?

Understanding each other in respect of various problems faced (A) Signup and view all the answers

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