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Advantages of Budgetary Control Budgetary control has become an important tool of an organization to control costs and to maximize profits.It helps in reducing the cost of production by eliminating the wasteful expenditure.Thus, it is an effective method of controlling the activities of various departments of a business unit.If there is no definite aim then the efforts will be wasted in achieving some other aims.By promoting cost consciousness among the employees, budgetary control brings in efficiency and economy.2.3.4.5.6.7.8.
Advantages of Budgetary Control Budgetary control has become an important tool of an organization to control costs and to maximize profits. Some of the advantages of budgetary control are: 1. It defines the goals, plans and policies of the enterprise. If there is no definite aim then the efforts will be wasted in achieving some other aims. 2. Budgetary control fixes targets. Each and every department is forced to work efficiently to reach the target. Thus, it is an effective method of controlling the activities of various departments of a business unit.
3. It secures better co-ordination among various departments.
4. In case the performance is below expectation, budgetary control helps the management in finding up the responsibility.
5. It helps in reducing the cost of production by eliminating the wasteful expenditure.
6. By promoting cost consciousness among the employees, budgetary control brings in efficiency and economy. 7. Budgetary control facilitates centralized control with decentralized activity.
8. As everything is planned and provided in advance, it helps in smooth running of business enterprise
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