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Budgeting & Forecasting › The Budgeting Process

What is meant by budgetary control?

Beginner

Answer

Budgetary control is the process of comparing actual results with the budget, analyzing the differences (variances), and taking corrective action. It uses the budget as a benchmark to monitor performance, hold managers accountable, and keep the organization on track toward its plan.
Real-world example Monthly management accounts compare actuals to budget, and managers explain and act on significant variances.

Common follow-ups: What is a variance? | How does budgetary control drive action?