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What is bottom-up (participative) budgeting? What is meant by budgetary control? Who is responsible for preparing a budget? What is a functional (departmental) budget? What is a cost center? What is a revenue center? What is the role of the budget committee? What is a budget manual? What is the principal budget factor (limiting factor)? What is budgetary slack and why does it matter?
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Budgeting & Forecasting › The Budgeting Process

What is the difference between planning and control aspects of budgeting?

Beginner

Answer

Planning is the forward-looking process of setting the budget—deciding targets and allocating resources. Control is the later comparison of actual results with the budget and taking corrective action (budgetary control). Budgeting serves both: it creates the plan and provides the yardstick for control.
Real-world example Setting next year's targets is planning; comparing monthly actuals to them is control.

Common follow-ups: Which aspect uses variance analysis? | How do the two aspects connect?

Variance Analysis The Budgeting Process The Budgeting Process
All 34 The Budgeting Process questions